Callable bond. Corso Books has just sold a callable bondLOADING It is a thirty-year quarterly bond with an annual coupon rateLOADING... of 5% and $1 comma 000 par value. The issuer, however, can call the bond starting at the end of 10 years. If the yield to callLOADING... on this bond is 9% and the call requires Corso Books to pay one year of additional interest at the call (4 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date? What is the bond price if priced with the assumption that the call will be on the first available call date? $ nothing (Round to the nearest cent.)

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.