is that correct and could you include the calculations if its not. output area and where the 40% is in the input area thank you.

9. Valuing Callable Bonds New Business Ventures, Inc. has an outstanding perpetual bond with a 9 percent coupon rate that can be called in one year. The bond makes annual coupon payments and has a par value of $1,000. The call premium is set at $150 over par value. There is a 60 percent chance that the interest rate in one year will be Il percent and a 40 percent chance that the interest rate will be 7 percent. If the current interest rate is 9 percent, what is the current market price of the bond? L BIU - H-10-A- lil THI . ste Format Painter Clipboard Font 5 Alignment : X f A D E E B Input area 2. Coupon rate Call premium Par value 9.00% 150 1,000 $ Probability of rate in one year Rate in one year 60% 11% Probability of rate in one year Rate in one year 40% 7% Current interest rate 9% Output area Coupon payment Call price $ 90.00 $ 1.150.00 Price in one year If interest rates are Discounted price Price $ A A 11% 818.18 908.18 If interest rates are Discounted price Price 7% $ 1.285.71 $ 1,375 71 Price today 921.93