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15 pts) Relative to your answer for $18 above, the yield-to-maturity of the callable bond in #19 will be select] while yield-to-worst will be Select % annually. Select Low because the collable bond has a higher price than the non-caltable bond with otherwise equivalent features. Lower because the calable bond has lower future cash flows Higher because the calable bond has higher future cash flows. Higher because the calable bond has a lower price than the non-callabie bond with otherwise equivalent features Equal because everything about these bonds is the same. bond in 219 will be select O $101.37 Select 7.2% D Question 21 3.6% 2.7% (5 pts) Relative to your ans maturity of the callable bond in #19 will be select] 1.4% while yield-to-worst will be select] % annually. Question 18 3 pts Use the following information for Questions 17 - 22 Consider a bond with the following Exactly 7 years to maturity 5% coupon, pad annually 5100 par value You observe the following interest rates in the economy Time Period Rate lorar 3005 (royar 4.00% oy3y 6.00% lyly 5,01% Although the "viy rate above is the market's expectation for what the year rate will be 1 year from now. you expect that it is equally likely that the actual rate is either 25% higher or 25% lower than the expectation. Secifically, you believe that the year rate will either be 6.26% 63.76% 17. (pts) What is the price of the bond it it is non-Callable

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