Final answer:
The question seeks to determine the difference between a bond's Yield to Maturity (YTM) and Yield to Call (YTC). However, without specific market interest rates or the assumption that the bond will be called, it is not possible to provide a definitive answer to the question.
Step-by-step explanation:
The question is asking to calculate the difference between the bond's Yield to Maturity (YTM) and its Yield to Call (YTC), known as the yield to worst (YTW) if the bond can be called before maturity. However, without the current yield curve or the market interest rates, we cannot calculate the precise YTM or YTC. The provided scenario in the question does not offer sufficient data to complete the calculations. The concept explained in the reference information indicates that as interest rates rise, bond prices fall, and vice versa. Additionally, it illustrates that a bond's yield is dependent on the interest payments and its capital gains or losses relative to its purchase price.
If we assume that the market's interest rates are equivalent to the coupon rate, we could guess that the YTM is close to the coupon rate because the bond sells for a slight premium to its par value. However, without the market rates, this remains speculative.
To properly answer the question, additional information such as the prevailing market interest rates corresponding to the durations under consideration (to maturity and to the call date) would be necessary, along with details on whether we are to assume that the bond will definitely be called if callable.