Question 17 1 pts $1.000 5.00% Bond Features Maturity (years) Face Value - Coupon Rate = Coupon dates (Annual) Market interest rate today Time to call (years) Price if Called Market interest rate in Year 3 5.00% $1,050.00 4.00% The above bond is callable in 3 years. When the bond is issued today, interest rates are 5.00%. In 3 years, the market interest rate is 4.00%. Should the firm call back the bonds in year 3 and if so, how much would the firm save or lose by calling back the bonds? yes it should call back the bonds, it will save $31.14 yes it should call back the bonds, it will save $29.58 yes it should call back the bonds, it will save $32.07 no it should not call back the bonds, it will lose $32.07 no it should not call back the bonds, it will lose $31.14 no it should not call back the bonds, it will lose $29.58