Question: I'm needing some help on how to get this answer. A company issues a $1,001] perpetual bond. The current rate is 6%. Next period, the

I'm needing some help on how to get this answer.

A company issues a $1,001] perpetual bond. The current rate is 6%. Next period, the rate will change to either 4% or 113%, with equal probability. The bond is callable at the end of the rst year only, fora price of$1,111r'.91]. What is the coupon amount, if the bond cells at par? a. $62.11!} b. $33.5 1 c. $1119.11!) {1. 51134.3 1 e. $1 tum

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