Need it as fast as possible please. Thank you.

Use the following information to solve the bond questions:

Seaside Builders bonds have a maturity of 10 years with a $1,000 face value, a 7.0% semiannual coupon, are callable in 5 years at $1,020, and currently sell at a price of $950.

1. Assume 10-year T-bonds have a YTM of 2.52%. Why do investors require a premium (higher rate of return) on Seaside Builders bonds? Choose one

a.) T-bonds are LESS risky than Seaside bonds

b.) T-bonds are MORE risky than Seaside bonds

2. How much is the premium (%) that investors require for investing in Seaside bonds rather than T-bonds?

a. 7.00%

b. 7.37%

c. 7.73%

d. 5.21%

e. 8.58%