When Fooden company originally issued its callable )%. IO-year bond, it was rated AA and priced to sell at par. The

bond is callable at the price that offers an equivalent vield to a Canada bond plus .35%at tht The credit spread over 10-year

Canada bonds was .25%. The bond pays interest annually

a. What was the call price at issue?

Now. 5 years later, the bond rating agencies have raised the bond rating to AAA and the bond's vield to maturity is 4.8%

Equivalent-maturity Canada bonds are yielding 4.55%

b. What is the current call price?

c. Would the Company consider calling the bond now?