ABC Inc. plans to issue a 15y ear, 15% annual coupon callable bond. The current yield is 12%. At the end of year 5 , the yield will be either 6% ( 40% probability) or 20%. The bond will be called at $1,000 (the par value) plus two additional coupon payments if the bond price is higher than the call price. ) Calculate the callable bond price. b) If ABC wants to issue the callable bond at par, what must the coupon rate be? [You can assume that the bond will be called if the yield is 6% and will not be called if the yield is 20%.] c) Assume that the yield changes to 6% at the end of year 5, ABC replaces the bond with a new 10 -year bond. The flotation cost is $50 per bond. The new bond will be parked in the money market to earn 3% interest over the 30-day overlap period. The tax rate is 30%. What is the NPV of the bond refund