Question: A bond with 6 years remaining until maturity is currently trading for 102 per 100 of par value. The bond offers an 8% coupon rate

A bond with 6 years remaining until maturity is currently trading for 102 per 100 of par value. The bond offers an 8% coupon rate with interest paid semiannually. The bond is first callable in 2 years, and is callable after that date on coupon dates according to the following schedule.

End of Year

Call price

103

102

100

A. What is the bonds YTM?

B. The bond's annual yield-to-first call is closest to?

C. What is the bond's yield to second call?

D. What is the bond's yield to worst?

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