When ABC Company originally issued its callable 5.75%, 9-year bond, it was rated AA and priced to sell at par. The bond is callable at the price that offers an equivalent yield to a Canada bond plus 0.2%. At that time, the credit spread over 9-year Canada bonds was 0.4%. The bond pays interest annually.

a. What was the call price at issue? (Round your answer to the nearest cent.)
 

Call price  $

Now, 5 years later, the bond rating agencies have raised the bond rating to AAA and the bond's yield to maturity is 5.25%. Equivalent-maturity Canada bonds are yielding 5.15%.

b. What is the current call price? (Round your answer to the nearest cent.)
 

Call price  $

c. Would ABC Company consider calling the bond now?