Refer to the following information:

Amount issued $280 million

Offered Issued at a price of 98.500% plus accrued interest (proceeds to company 98.717%) through Citi and JPMorgan

Interest 6.85% per annum payable June 15 and December 15.MaturityJune 15, 2041

Denomination, face value, or principal$1,000

a.ATAM decides to call the bond one year before it is due to expire. The interest rate on one-year Treasury bonds is 2.85%. What price must ATAM pay to call the bonds?(Do not round your intermediate calculations. Round your answer to 2 decimal places.)

b.If the interest rate on Treasury bonds is 11.85%. What price must ATAM pay to call its bonds?(Do not round your intermediate calculations. Round your answer to 2 decimal places.)