9 10 similar to Part 2 of 2 HW Score 60 12 of 20 points...

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9 10 similar to Part 2 of 2 HW Score 60 12 of 20 points Points 0 5 of 1 Related to Checkpoint 9 3 Bond valuation Doisneau 25 year bonds have an annual coupon interest of 11 percent make interest payments on a semiannual basis and have a 1 000 par value If the bonds are trading with a market s required yield to matu percent are these premium or discount bonds Explain your answer What is the price of the bonds a If the bonds are trading with a yield to maturity of 15 then Select the best choice below A there is not enough information to judge the value of the bonds OB the bonds should be selling at a premium because the bond s coupon rate is greater than the yield to maturity of similar bonds C the bonds should be selling at a discount because the bond s coupon rate is less than the yield to maturity of similar bonds OD the bonds should be selling at par because the bond s coupon rate is equal to the yield to maturity of similar bonds b The price of the bonds is Round to the nearest cent

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