Use Table $25\mathrm{.}1$ to answer the following questions:

Amount issued

Offered

Interest

Maturity

Denomination, face value, or principal

Callable Remaining payments discounted at the treasury rate $+30$ basis points

a$.$ AMAT decides to call the bond one year before it is due to expire. The interest rate on one$-$year Treasury bonds is $4\mathrm{.}05\%.$ What

price must AMAT pay to call the bonds?

Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded

to $2$ decimal places.

b$.$ If the interest rate on Treasury bonds is $13\mathrm{.}05\%.$ What price must AMAT pay to call its bonds? $($Hint: AMAT will pay greater value

between par face value and PV of remaining payments$)$

Note: Do not round your intermediate calculations. Enter your answers in dollars, rather than in millions of dollars, rounded

to $2$ decimal places.

a$.$ Price payable by AMAT

b$.$ Price payable by AMAT

TABLE $25\mathrm{.}1$ Summary of terms of bond issue by Applied Materials $($AMAT$).$