Answer the following debt questions in Excel.

DDD Corporation bonds mature in 12 years, have a 7.0% annual coupon rate (paid semi-annually), and a $1,000 par value. The bonds are callable in 6 years at a call price of $1,100.

• i. Assuming the current price of this bond is $1,100, what is the (a) yield to maturity, (b) yield to call, and (c) current yield of this bond?
• ii. What would you be willing to pay for this bond if you require a 6.1% rate of return on similar investments?
• iii. Would you purchase the bond for $1,10 if your required rate of return was 6.1%? Explain.