$2$ bonds were issued five years ago, with terms given in the following table

Answer the six questions provided below $($each question carries $2$ marks$)$

a$.$ Why is the price range greater for the $6\%$ coupon bond than the floating$-$rate bond?

b$.$ What factors could explain why the floating$-$rate bond is not always sold at par value?

$c.$ Why is the call price for the floating$-$rate bond not of great importance to investors?

d$.$ Is the probability of a call for the fixed$-$rate bond high or low?

$e.$ If the firm were to issue a fixed$-$rate bond with a $15-$year maturity, what coupon rate would it need to offer to issue the bond at par

value?

$f.$ Why is an entry for yield to maturity for the floating$-$rate bond not appropriate?