please answer

Question 1 20 pts LO3 Bond Features Maturity (years) 5 $1,000 Face Value 7.00% Coupon Rate = Coupon dates (Annual) Market interest rate 7.00% today Time to call (years) 33 Price if Called $1,070.00 Market interest rate in Year 3 5.00% The above bond is callable in 3 years. When the bond is issued today, interest rates are 7.00% . In 3 years, the market interest rate is 5.00%.Should the firm call back the bonds in year 3 and if so, how much would the firm save or lose by calling back the bonds? no it should not call back the bonds, it will lose $33.80 no it should not call back the bonds, it will lose $32.81 no it should not call back the bonds, it will lose $31.17 yes it should call back the bonds, it will save $31.17 yes it should call back the bonds, it will save $32.81 yes it should call back the bonds, it will save $33.80