2. You are a portfolio manager evaluating a semi-annual 5 year non-callable bond that pays 6% coupon and yielding 8%. You are also evaluating a semi-annual 5 year callable bond that also pays a 6% coupon and is yielding 9%. The callable bond can be called at par any time after the end of year 1. You decide to buy both the bonds. At the end of year 1, assume interest rates go down by 400 basis points (4%). Answer the following 3 part question: (assume par = $100) 1. What is the Price of the bullet or non-callable bond at the end of year 1