Williams Industries has decided to borrow money by issuing perpetual bonds with a coupon rate of 6 5 percent, payable annually The one-year interest rate is 6.5 percent Next year, there is a 30 percent probability that interest rates will increase to 8 percent, and there is a 70 percent probability that they will fall to 5 percent Assume a par value of $1,000 a. What will the market value of these bonds be if they are nonsalable? b. If the company decides instead to make the bonds callable in one year, what coupon rate will be demanded by the bondholders for the bonds to sell at par? Assume that the bonds will be called it-interest rates fall and that the call premium is equal to the annual coupon. What will be the value of the call provision to the company