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Question: A bond with 5 years remaining until maturity is currently trading for $101 per $100 of par value. The bond offers a 5% coupon

Question:A bond with 5 years remaining until maturity is currently trading for $101 per $100 of par value. The bond offers a 5% coupon rate with interest paid semiannually. The bond is first callable in 3 years, and is callable after that date on coupon dates according to the following schedule:

End of YearCall Price

3$102

4$101

5$100

1.What is the bond's annual yield-to-maturity?

2.What is the bond's annual yield-to-first-call?

3.What is the bond's annual yield-to-second-call?

4.What is the bond's yield-to-worst?

Please Show Work and Explain. Thank you.

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