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a . Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par. Bond
a Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par.
Bond is selling at a premium because its coupon rate is greater than the going interest rate.
Bond is selling at a discount because its coupon rate is less than the going interest rate.
Bond is selling at
because its coupon rate is
equal to
equal to
the going interest rate.
b Calculate the price of each of the three bonds. Round your answers to the nearest cent.
Price Bond A: $
Price Bond B: $
Price Bond C: $
Current yield Bond A:
Current yield Bond B
Current yield Bond C:
d If the yield to maturity for each bond remains at what will be the price of each bond year from now? Round your answers to the nearest cent.
Price Bond A: $
Price Bond B: $
Price Bond C: $
What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places.
Bond
Bond B
Bond C
Expected capital gains yield
Expected total return
Please help with section d
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