Bonds with Call and Put Options and the theoretical elements of Value Excercise 5 a)Explain what is a Bond with call and Put Option, what do they consist of? Who has the right to the option in each case? b) Explain why in the position of a Callable Bond it is said that the investor has bought a Bond (option-free) and has sold a Call option c) Estimate Yield to first Call if the actual price is $110.94 First Call Yield Issuer: Maturity First Coupon Coupon Rate First Callable Date First Callable Price Par Callable Par Callable Price Payment Freq Apple Inc. 10/10/2025 10/04/2014 6.75% 10/10/2019 $106.74 10/10/2024 $100 Semi-annual d) Estime Yield to Par Call if the actual price is $110.94 Par Call Yield