Bond A is a 12 year 7% annual coupon bond. Bond B is a 12 -year 9% annual coupon bond. Bond C is a 12 -year 11% annual coupon bond. Each of these thice bonds has a yicid to maturity (YTM) of 9%. Assume the market rate of interest does not change over time. 1. Specify the bond that sells at premium, sells at discount, and sells at par. 2. What is value of each bond at this moment (t=0) ? 3. What would be the price of each bond 1 year from now? 4. Is the expected total return earned on Bond A the same as the expected total retum earned on Bond C? Explain. 5. If the capital gains yidd (CGY) earned on Bond A greater than the CGY on Bond C? Explain. 6. is the interest Vied (IY) on Bond A in year 2 greater than the IY on Bond C in year 22 Explain. Hint: The last 3 questions can be answered with obstract thinking (i.e. without doing any calculotion), Altemotively, you can calculate the expected total refurn ond its two components (CGY and M ) to conclude, which tends to be move straightforword