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. Homework: Homework 5 Save Score: 5 of 10 pts 6 of 8 (6 complete) HW Score: 60.42%, 48.33 of ... P9-10 (similar to) Question Help 0 (Related to Checkpoint 9.3) (Bond valuation) Doisneau 17-year bonds have an annual coupon interest of 8 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 maturity of 11 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 11%, 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 band's coupon rate is greater than the yield to maturity of similar bonds c. the bonds should be selling at par because the bond's coupon rate is equal to the yield to maturity of similar bonds. D. the bonds should be selling at a discount because the bond's coupon rate is less than the yield to maturity of similar bonds. b. The price of the bonds is $ (Round to the nearest cent.) Homework: Homework 5 Save Score: 0 of 10 pts 2 of 8 (0 complete) HW Score: 0%, 0 of 80 pts P9-4 (similar to) Question Help (Related to Checkpoint 9.4) (Bond valuation) A bond that matures in 12 years has a $1,000 par value. The annual coupon interest rate is 11 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? a. The value of this bond if it paid interest annually would be $ . (Round to the nearest cent.) Homework: Homework 5 Save Score: 3.33 of 10 pts 5 of 8 (6 complete) HW Score: 60.42%, 48.33 of ... Ex P9-9 (similar to) Question Help (Yield to maturity) Fitzgerald's 35-year bonds pay 8 percent interest annually on a $1,000 par value. If the bonds sell at $825, what is the bond's yield to maturity? What would be the yield to maturity if the bonds paid interest semiannually? Explain the difference. a. The bond's yield to maturity if the bond pays interest annually is 9.779 %. (Round to three decimal places.) b. The bond's yield to maturity if the bond paid interest semiannually would be %. (Round to three decimal places.)

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