Please do not use excel, show all formulas and explain.

Answers should be time 5 and i = 8.812% and i = 5.754

A five-year 1000 par value bond with an 8% coupon rate, payable semiannually, is redeemed for par at maturity and is callable for $1075 after three years. For each price provided below, determine when the bond is most likely to be redeemed, and determine the annual effective yield rate that coincides with the likely redemption date. Justify your answer to the redemption date part of the question. (i) The bond is priced at $975. (ii) The bond is priced at $1,100. Answer: time 5 and i = 8.812% / time 5 and i = 5.754% A five-year 1000 par value bond with an 8% coupon rate, payable semiannually, is redeemed for par at maturity and is callable for $1075 after three years. For each price provided below, determine when the bond is most likely to be redeemed, and determine the annual effective yield rate that coincides with the likely redemption date. Justify your answer to the redemption date part of the question. (i) The bond is priced at $975. (ii) The bond is priced at $1,100. Answer: time 5 and i = 8.812% / time 5 and i = 5.754%