Exo Company has a semiannual coupon bond that sells for $1060.47. The bond matures in 8 years, has a par value of $1,000 and yield to maturity of 7%. (1) What is the bond's coupon rate? (2) If Exo issued the same bond (same coupon rate, face value and time to maturity) with 'callable' feature. would the price of Exo Bond be lower or higher? Please explain why. Callable Bond: A bond that the issuer has the option to redeem before it reaches its stated maturity, and it allows the issuing company to pay off the debt early. (3) You want to invest in a bond and you anticipate that there will be future drop in interest rates in the near future. Would you rather invest in a bond with longer time to maturity or shorter time to maturity? Please explain why.