KIC Inc. plans to issue $$5\mathrm{.}3$ million of bonds with a coupon rate of $13$ percent paid semiannually and $33$ years to maturity. The current one$-$year market interest rate on these bonds is $12$ percent. In one year, the interest rate on the bonds will be either $15$ percent or $8$ percent with equal probability. Assume investors are risk neutral.

a$.$ If the bonds are non$-$callable, what is the price of the bonds today? $($Do not round intermediate calculations. Enter the answer in dollars. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

Price of the bonds $

b$.$ If the bonds are callable one year from today at $$1,485,$ will their price be greater or less than the price you computed in part $($a$)?$

multiple choice

Greater than

Less than

c$.$ If the bonds are callable one year from today at $$1,485,$ what is the current price of the bond? $($Do not round intermediate calculations. Enter the answer in dollars. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

Current price of the bond $

d$.$ What is the value of the call provision to the company? $($Do not round intermediate calculations. Enter the answer in dollars. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

Call value $