A high yield bond has fhe following features: $1000 par value, coupon of 11.5%, matures in 10 years, callable after 2 years with a penalty of 1 year's intrest.

A) if comparavle yeilds are 12%, what about the prive of this bond be?

B) would you expect the firm to call the bond if tirlds are 12%?

C) if currebt yields are 8%, what should the price of the bond be?

D) would tou expect the firm to call the bond today if yields are 8%?

E) if you expect the bond to be called after three years, what is the maximum price you would pay for the bond if the current intrest rate is 8%?