According to the figure below, as a bond approaches maturity the premium (or discount) reduces to zero. Prove this by calculating the sales price with 7, 5, and 2 years remaining to maturity for the following two bonds. Assume a constant yield to maturity of 9 percent. a. A 10-year, 11 percent annual coupon bond. b. A 10-year, 4 percent annual coupon bond. -year, 11 percent and Coupon DNU. -year. 4 percent annual coupon bond. en i Data Table hd w es TS with 5 sales s rei 2 5 7 10 6% 0.890 0.747 0.665 0.558 Compound Sum of $1 (PVIF) 7% 8% 9% 0.873 0.857 0.842 0.713 0.681 0.650 0.623 0.583 0.547 0.508 0.463 0.422 10% 0.826 0.621 0.513 0.386 you Print Done J-year, 11 percent animal coupon DNU. D-year 4 percent annual coupon bond. on i Data Table - X es 's ale rer n 2 5 7 10 6% 1.833 4.212 5.582 7.360 Compound Sum of $1 (PVIFA) 7% 8% 9% 1.808 1.783 1.759 4.100 3.993 3.890 5.389 5.206 5.033 7.024 6.710 6.418 10% 1.736 791 4.868 6.145 you Print Dona $1,053 $1,100 Maturity Bond value when required rate of return = 12% $1,000 net Value a. The sales price, PV, of a 10-year, 11 percent annual coupon bond, a yield to maturity of 9 percent and wit 7 years remaining to maturity is $. (Round to the nearest cent.) The sales price, PV, of a 10-year, 11 percent annual coupon bond, a yield to maturity of 9 percent and with 5 years remaining to maturity is $ . (Round to the nearest cent.) The sales price, PV, of a 10-year, 11 percent annual coupon bond, a yield to maturity of 9 percent and with 2 years remaining to maturity is $. (Round to the nearest cent.) b. The sales price, PV, of a 10-year, 4 percent annual coupon bond, a yield to maturity of 9 percent and with 7 years remaining to maturity is $ . (Round to the nearest cent.) The sales price, PV, of a 10-year, 4 percent annual coupon bond, a yield to maturity of 9 percent and with years remaining to maturity is $ (Round to the nearest cent.) The sales price, PV, of a 10-year, 4 percent annual coupon bond, a yield to maturity of 9 percent and with a years remaining to maturity is $. (Round to the nearest cent.)