a) AMAT decides to call the bond one year before it is due to expire. The interest rate on one-year Treasury bonds is 7.25%. What price must AMAT pay to call the bonds?

Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2 decimal places.

b) If the interest rate on Treasury bonds is 16.25%. What price must AMAT pay to call its bonds?

Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded to 2 decimal places.

Use Table 25.1 to answer the following questions: AmountissuedOfferedInterestMaturityDenomination,facevalue,orprincipalCallableRemainingpaymentsdiscountedatthetreasuryrate+30basispoints$430millionIssuedatapriceof98.500%plusaccruedinterest(proceedstocompany98.717%)throughCitiandJPMorgan11.25%perannumpayableJune15andDecember15.June15,2041 a. Price payable by AMAT b. Price payable by AMAT