Hattiesburg Hospital issued a 20 year, 8 percent annual coupon bond (par value $1,000) two years ago. The bond now has 18 years remaining to maturity and sells for $1,200. The bond has a call provision that allows the hospital to call the bond in 5 years at a call price of $1,050. If an investor expects a call and requires a 4.5 percent rate of return, will the investor be likely to purchase the bond? Explain your answer. (30 points) Question 2. Homecare Inc. has three bond issues outstanding. All three bonds pay $100 in annual interest plus $1,000 at maturity. Bond S has a maturity of five years, bond M has a 15-year maturity, and bond L matures in 30 years. a. What is the value of each of these bonds when the required interest rate is 5 percent, 10 percent, and 15 percent? b. Why is the price of bond L more sensitive to interest rate changes than the price of bond S?