Use the following information to answer questions $21-23.$ Please enter percentages as whole numbers, e$.$g$.$ enter

$7\mathrm{.}18\%$ as $7\mathrm{.}18$ not $0\mathrm{.}0718.$

A $5-$year $6\%$ annual coupon bond yields $4\%.$ The bond is callable in one year at $102.$ What is the yield to call? Solve

the problem in three stages.

Question $17$

Compute the price of the bond first. Assume face $=$$$1000.$ Do not round.

$P_0=$$ $?$

Question $18$

Draw the picture of the bond's cash flows assuming it will be called in one year.

If the bond is callable in one year, compute the yield to call, $($solve for $i$ ie internal rate of

return on the cash flows$)$

ytc $\%?$

Question $19$

Draw the picture of the bond$$s cash flows assuming it will be called in two years.

If the bond is callable in two years, the yield to call is:

ytc $=?$

Please answer all questions $17,18,$ & $19$ to receive a like