12. (13 points) A $1,000 6% par-value callable bond with annual coupons matures at the end of 5 years. The bond can be called-in at the end of the 3rd year. You agree to purchase the bond for $1,050 on the condition that the call-premium at the end of year 3 is $X, which will give you an annual yield which is 0.25% more than the annual yield of the bond at maturity. Find X. 12. (13 points) A $1,000 6% par-value callable bond with annual coupons matures at the end of 5 years. The bond can be called-in at the end of the 3rd year. You agree to purchase the bond for $1,050 on the condition that the call-premium at the end of year 3 is $X, which will give you an annual yield which is 0.25% more than the annual yield of the bond at maturity. Find X