New business ventures, inc., has an outstanding perpetual bond with a coupon rate of 11 percent that can be called in one year. the bond makes annual coupon payments and has a par value of $1,000. the call premium is set at $125 over par value. there is a 60 percent chance that the interest rate in one year will be 13 percent, and a 40 percent chance that the interest rate will be 9 percent. if the current interest rate is 11 percent, what is the current market price of the bond? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan