a. 21. On 9/22/2017 GBR, Inc. issues at par $550 million in 6.50% bonds, maturing in 2042. The bonds are callable after five years at a 14% premium. What is the bond's YFC at issue? 8.790% b. Suppose that on 3/22/2019 the bond has a quoted price of 103.477. What is the bond's YTM? What is the bond's YFC? 6.217%; 8.825% C. If the YTM on the bond is 5.5% on 9/22/2022, what is the present value of the coupon savings if GBR were to call the bond? Will GBR call the bond? $15,229,399; No, because the NPV is - $10,785,222 d. Would GBR choose to call the bond on 9/22/2025 if the YTM at that time were 5.5%? No because the NPV is - $5,207,380 e. Would GBR choose to call the bond on 9/22/2025 if the YTM at that time were 5.4%? Yes because NPV is $1,300,769. a. 21. On 9/22/2017 GBR, Inc. issues at par $550 million in 6.50% bonds, maturing in 2042. The bonds are callable after five years at a 14% premium. What is the bond's YFC at issue? 8.790% b. Suppose that on 3/22/2019 the bond has a quoted price of 103.477. What is the bond's YTM? What is the bond's YFC? 6.217%; 8.825% C. If the YTM on the bond is 5.5% on 9/22/2022, what is the present value of the coupon savings if GBR were to call the bond? Will GBR call the bond? $15,229,399; No, because the NPV is - $10,785,222 d. Would GBR choose to call the bond on 9/22/2025 if the YTM at that time were 5.5%? No because the NPV is - $5,207,380 e. Would GBR choose to call the bond on 9/22/2025 if the YTM at that time were 5.4%? Yes because NPV is $1,300,769