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- Bond a has a gya annual coupon, matures in 12 years, and has a $1, odo face value. - Bond a has a 12%
- Bond a has a gya annual coupon, matures in 12 years, and has a $1, odo face value. - Bond a has a 12% annual coupon, matures in 12 yoars, and has a $1, non face value. * Bend C has a 6% annual coupon, matures in 12 years, and has a $1,000 face welue. Each bond has a vield to maturity of 95s. x Dowrload spreadshaet Bend 'eluation-4d85ee,xlsx a. Before calculating the prices of the bonds, indicate whether each bond is treding at a premium, at a discount, or at par. Bond i is seling at F F /(0 because its coupon rate is cqual to the poing interest rate. Band a s seling at | bocause its coupan rate is the going interest rate. Band C ts seling at bocsuse its caupan rate is the going interest rate. b. Calculate the price of each of the threa bonds. Round your answers to the nearest cent. Price ;Bond Aj: $ Price \{Bond B\}: $ Prica (Band c) \$ Current vieid (Dond Ay : Current vield (Rond B): Current pield (Bond C): Price ;Bond Ay:$ Price \{Bond B): $ Price :Bond CJ: $ What is the expected capital gains yield for each bond? What is the expected botal return for each bond? Round your answers to two decimal places
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