问题详情

A 10% annual coupon bond with 3 years to maturity is currently trading at $1,010. The bond is callable in one year at a call price of $1,008 and in two years at a call price of $1,005. The bond’s yield to worst most likely occurs when the bond is:
A. held until maturity in 3 years.
B. called in year 1.
C. called in year 2.