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Can you please help to find the answer to the below? Can you also put in the equations to help determine the

Can you please help to find the answer to the below? Can you also put in the equations to help determine the

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answer? If there is work that is done in excel, can you show the formula as well?

Valuing Callable Bonds. Assets Inc., plans to issue $5 million of bonds with a coupon rate of 7 percent, a par value of $1,000, semiannual coupons, and 30 years to maturity. The current market interest rate on these bonds is 6 percent. In one year, the interest rate on the bonds will be either 9 percent or 5 percent with equal probability. Assume investors are risk-neutral.