Bell Canada announced that it will redeem on February 11, 2013 (the Redemption date), prior to maturity, all of its outstanding $150,000,000 principal amount of 10% Debentures, Series EA, due June 15, 2014.

The Series E-A Debentures will be redeemed at a price equal to the greater of the "Canada Yield Price" and the principal amount of the Series M-35 Debentures, together in each case with accrued and unpaid interest up to, but excluding, the Redemption Date (which is set for February 11, 2013).

The "Canada Yield Price" means a price equal to the price of the Series E-A Debentures calculated to provide a yield to maturity equal to the Government of Canada Yield plus 0.25%. The "Government of Canada Yield", on any date, means the yield to maturity on such date, compounded semi-annually, which a Government of Canada Bond would carry with a term to maturity equal to the remaining term to maturity of the Series E-A Debentures.

Assume a Government of Canada Yield of 1.15%

a)(6 marks) What is the redemption price, clean price and accrued interest for each of the Series E-A bonds?You only need to calculate the price and accrued interest for one bond.

b)(2 marks) How much of a premium did Bell Canada pay to bondholders in order to redeem the bonds early?Please just calculate the premium on one bond (not the entire issue amount).