The market yield on a fifteen-year 7.5% bond is 6.5%. The bond makes semi-annual coupon payments and is callable in five years at a call price of $1,075. (6 marks)

a) What is the current bond price based on the market yield? 2 marks

b) What is the bond's yield to call? 2 marks

c) Is this bond likely to be called? Explain. 2 marks