Help please

Round your nal answer to 4 decimal places. Only accept hand-written assignment. Use pen and paper, ipad or tablet. save as pdf le and upload. CTI Inc. issues 500 callable bonds with par value of $1.000. This callable bond pays 20% annual coupon and matures in 20 years. Its yield is 16% and it is callable at the end of year 5 at par value plus one additional coupon payment. Yield at end of Year 5 Probability 30% 40% 20% 30% 10% 30% a} What is the price of the bond if it were not callable? b} What is the price of the callable bond? c] Assume at the end of year 5, CTI calls the bonds and replaces them by a 15-year bond selling at par. The otation cost is 1% of the par 1nralue. CTI has to issue the new bonds one month before calling. During the month, the proceeds will earn 4% per year. The tax rate is 0.3. What is the NW of refunding