Question: 2. 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
2. 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 (1) What is the bonds yield-to-maturity? (2) What is the bonds yield-to-first-call? (3) What is the bonds yield-to-second-call? (4) What is the bonds yield-to-worst?
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