You are considering the bonds of Epsilon, Inc., a printer manufacturer. The bonds make semiannual payments and have five years to maturity, a coupon rate of 7%, and a redemption value of $1,000.

A. Determine the intrinsic value of these bonds assuming that your required rate of return is 10% (use the PV function.)

B. Also determine the current yield and the yield to call (use the RATE function) if the bonds can be called in four years with a call premium of 2%.

(This needs to be done in Excel)