Given your answers to parts a and b$,$ check to see whether the prices in the following table are consistent.

You will analyze the following three bonds, which are identical except for the special features listed. $(8$ marks total$)$

Bond Face value Maturity Coupon rate $($paid annually$)$ Yield to maturity$*$ Special features Price

a $100020$ years $5\mathrm{.}5\%5\%$ None $1062\mathrm{.}31$

b $100020$ years $5\mathrm{.}5\%5\mathrm{.}5\%$ Callable $1000\mathrm{.}00$

c $100020$ years $5\mathrm{.}5\%3\mathrm{.}5\%$ Callable and Convertible into stock $1284\mathrm{.}25$

$*$ Yield to maturity represents the market$$s required rate of return. It is calculated using only the price, the stated coupon payments, and face value, without regard for the special features.

i$.$ What is the implied value of the callability provision? $(2$ marks$)$

ii$.$ Is this value consistent with your answer to part a$?$ Briefly explain. $(2$ marks$)$

iii. What is the implied value of the conversion privilege? $(2$ marks$)$

iv$.$ Is this value consistent with your answer to part b$?$ Briefly explain. $(2$ marks