Question: Consider a 4 - year callable bond with a 5 % coupon rate and $ 1 , 0 0 0 face value. There is a

Consider a 4-year callable bond with a 5% coupon rate and $1,000 face value. There is a 40% chance that the bond will be called in two years, with a call price of $1000.
What should be the yield to maturity of this bond if it sells for $932?
What should be the yield to call of this bond if it sells for $932?
What should be the current price of this bond if the yield to the expected payoff is 6%?
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