Assume that a 20-year, 5% annual coupon bond with semiannual payments has a par value of $1,000. Assume the bond can be called at the ten-year mark (i.e., in 10 years) at a call price of $1,050. The bond currently sells for $950. Employ the excel file to answer the following questions:

1. Copy present values from the previous step into the table and fill in the table. A bond will only be called if it is cheaper for the issuer. Actual present value depends on whether the bond is called or not (7 Points)