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Bond C makes semi - annual payments, has a maturity of 5 years and has a coupon rate of 1 2 , 5 % .

Bond C makes semi-annual payments, has a maturity of 5 years and has a coupon rate of 12,5%. Bond D has a maturity of 6 years and a coupon rate of 12,2%. The nominal value of each bond is R15000 and the interest rate in the market is 12.35%.
(a) What is the value of Bond C
(b) What is the value of Bond D
(c) Which bons is trading at a premium and which one is trading at a discount

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