a) What price would you pay for a standard 12% coupon bond (with semiannual payments and a face value of $100,000) that has 10 years to maturity, if you want to earn an effective yield rate of 7.5% per semiannual period? Is it a premium or a discount bond?

b) If there is a call provision after 5 years, what is the least amount you should be willing to pay for the bond to keep the desired yield rate of 7.5%?

(no excel please.)