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Use the bond term's below to answer the question Maturity 6 years Coupon Rate 5% Face value $1,000 Annual Coupons The bond is callable in

Use the bond term's below to answer the question Maturity 6 years Coupon Rate 5% Face value $1,000 Annual Coupons The bond is callable in year 4 The call price is $1,050 The interest rate in period 4 is 2.50% If the firm calls back the bond, how much does the firm save or lose?

$1.73

$1.81

-$1.73

-$1.81

-$1.91

$1.91

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