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Part $1$

A company issues a callable$($at par$)20-$year, $5\%$ coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On$$ release, it has a price of $ $103$ per$$ $$100$ of face value. What is the yield to worst of this bond when it is$$ released?

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Part $1$

A$.$

$1\mathrm{.}55\%$

B$.$

$3\mathrm{.}1\%$

C$.$

$1\mathrm{.}94\%$

D$.$

$2\mathrm{.}72\%$