A manufactoring company intends to issue callable, perpetual bonds with an annual coupon payment. The bonds are callable at 1,250. One year interest rates are 11%. There is a 60% probability that long term interest rates one year from today will be at 13% and a 40% probablity that they will be at 9%. Assume that if interest rates fall the bonds will be called. What coupon rate should the bonds have in oder to sell at par value? What is the coupon payment?