Question: 1. A bond with 5 years remaining until maturity is currently trading for 101 per $1,000 of par value. The bond offers a 6% coupon

1. A bond with 5 years remaining until maturity is currently trading for 101 per $1,000 of par value. The bond offers a 6% coupon rate with interest paid semi-annually. The bond is first callable in 3 years, and is callable after that date on coupon dates according to the following schedule:

End of Year Call Price

3 1020

4 1010

5 1000

What is the bonds yield-to-maturity?
What is the bonds yield-to-first-call?
What is the bonds yield-to-second-call?

2. The following corporate bond with the par value of $1,000 is sold for settlement on 16 June 2020.

Annual Coupon rate: 5%

Coupon Payment Frequency: Semi-annual

Interest Payment Dates: 10 April and 10 October

Maturity Date: 10 October 2022

Current Yield-to-Maturity: 4%

What is the full price of this bond when it settles on 16 June 2020?
What is the accrued interest of this bond on the settlement date of 16 June 2020?
What is the clean price of this bond on the settlement date of 16 June 2020?
If this is a Treasury note, what are the full price, accrued interest, and clean price?

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