Crane, Inc., has issued eight-year bonds with a coupon rate of 7.435 percent and semiannual coupon payments. The markets required rate of return on such bonds is 7.750 percent.

(a)

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What is the market price of these bonds? (Round answer to 2 decimal places, e.g. 15.25.)

Market price

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(b)

If the above bond is callable after five years at an 8.0 percent premium on the face value, what is the expected return on this bond? (Round answer to 4 decimal places, e.g. 15.2505%.)

Expected return

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