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one$-$year market interest rate on these bonds is $9$ percent. In one year, the interest rate on the bonds will be either $12$ percent or $6$ percent with equal probability. Assume investors are risk neutral.

a$.$ If the bonds are non$-$callable, what is the price of the bonds today? $($Do not round intermediate calculations. Enter the answer in dollars. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

$10$ Price of the bonds

$02-50-10$

b$.$ If the bonds are callable one year from today at $$1,515,$ will their price be greater or less than the price you computed in part $($a$)?$

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Greater than

Less than

c$.$ If the bonds are callable one year from today at $$1,515,$ what is the current price of the bond? $($Do not round intermediate calculations. Enter the answer in dollars. Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

Current price of the bond

$

d$.$ What is the value of the call provision to the company? $($Do not round intermediate calculations. Enter the answer in dollars.

Round the final answer to $2$ decimal places. Omit $ sign in your response.$)$

Call value $