Consider a two-period corporate bond with the following characteristics. The bond was issued at $t = 0$ with face value $FV = 100$ at $t = 2$. In period $t = 1$ and $t = 2$ coupons of $5$ are paid out ($c = 5$). We are in $t = 1$ and the bond issuer has just paid the first coupon. The price of the bond is 101.942.
Suppose that the bond is callable at $101$. The bond issuer is informed by an investment bank that it can issue a new one period zero coupon bond worth $101$ today for a face value of $104.030$ in $t = 2$.What is the yield to maturity on this hypothetical bond?
The eqaution is given by: $$P_0 : \frac{c}{(1+r)} + \frac{C}{(1+r)^t} + \frac{FV}{(1+r)^t}$$
Where
$c=0$
$FV= 104.03$
$P_0 = 101$
$t=2$
And solve for $r$. But the right answer is all of this above, but $t=1$ .. Why? When they say that $t=2$?