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5. The valuation of bonds Aa Aa Muster! Manufacturing Corporation (MMC) has an issue of 5-year, 9% annual coupon bonds outstanding. The bonds, which were

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5. The valuation of bonds Aa Aa Muster! Manufacturing Corporation (MMC) has an issue of 5-year, 9% annual coupon bonds outstanding. The bonds, which were originally issued 15 years ago, have a face value (FV) of $1,000, a yield-to-maturity (YTM) of 12%, and are noncallable. What is the current market price of MMC's bonds? O $758.08 $1,114.83 O $891.86 O $981.05 Are the bonds of Musterl Manufacturing Corporation selling at a discount, at par, or at a premium? Discount Premium Par What is the current yield on Musterl Manufacturing Corporation's outstanding bonds? 8.07% 9.17% 10.09% 11.87% What is the expected one-year capital gain yield on the bonds of Musterl Manufacturing Corporation? 0 0 0 1.91% 2.25% 1.53% 1.73%

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