1. Suppose that a 8% 20-year bond with semiannual payments has the following call structure:

• not callable for the next 3 years
• first callable in 3 years at $101
• first par call date is in 5 years
• first putable in 10 years at par

The price of the bond is $105.

Will this bond issue be called?

Group of answer choices

• Yes, it will be called at par in year 5.
• No, it will not be called but instead it will be put.
• No, it will not be called but instead the issuer will let it mature.
• Yes, it will be called at $101 in year 3.

2. In previous question, what is the annualized yield to worst? Write your answer in percent with 2 decimal places.