attached are two different problem in finance. resolve and details

Consider the prices of the following three Treasury issues as of February 24, 2012: 7.400 7.980 11.730 May 17 May 17 May 17 124.53125 121.65625 152.81250 124.59375 121.71875 153.00000 19 3 21 5.46 5.42 5.50 The bond in the middle is callable in February 2013. What is the implied value of the call feature? ( Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Call value $ Problem 15-10 Bond Refunding Charles River Associates is considering whether to call either of the two perpetual bond issues the company currently has outstanding. If the bond is called, it will be refunded, that is, a new bond issue will be made with a lower coupon rate. The proceeds from the new bond issue will be used to repurchase one of the existing bond issues. The information about the two currently outstanding bond issues is: Bond A Coupon rate Value outstanding Call premium Transaction cost of refunding Current YTM Bond B 7% 8% $134,000,000 $141,000,000 7.8% 8.4% $ 12,400,000 $ 17,500,000 6.25% 7.1% The corporate tax rate is 40 percent. What is the NPV of the refunding for each bond? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) NPV Bond A Bond B $ $ Which, if either, bond should the company refinance? Bond A Bond B Refund both bonds Neither bond