1 What is the value of a 13% coupon bord that is otherwise identical to the bond described in part d? 2 What is the value of a 7% coupon bond with these characteristics? Would we now have a discount or 3. What would happen to the values of the 7, 10, and 13% coupon bonds over time if the requmd 1. What is the yield to maturity on a 10year, 9% annual coupon, si,00 par value bond that sells for 2 What are the total retum, the current yield, and the capital gains yield for the discount bond? Assume Would we now have a discount or a premium bond? premium bond? return remained at 10%? [Hint: With a financial calculator, enter PM, 1/YR, FV, and N; then change (override) N to see what happens to the PV as it approaches maturity 887 00 That sells for $1,134.207 What does the fact that it sells at a discount or at a premium tell you about the relationship between ra and the coupon rate? that it is held to maturity, and the company does not default on i (Hint Refer to fotnote 7 for the definition of the current yield and to Table 7.1)