1. Set up the calculation to arrive at the market value of a new bond having a face amount of $1,000, the annual interest rate of 7% payable semiannually, callable at the end of five years (call price of 106) and 25 years remaining maturity at a 6% yield to call. (Do not use a calculator. Show the appropriate equation and data substitution.) At this yield will the bond trade at par, a discount or a premium?