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(Bond valuation) You are examining three bonds with a par value of $1,000 you receive $1,000 at maturity) and are concerned with what would happen

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(Bond valuation) You are examining three bonds with a par value of $1,000 you receive $1,000 at maturity) and are concerned with what would happen to their market value it interest rates (or the market discount rate) changed. The three bonds are Bond A-a bond with 4 years left to maturity that has an annual coupon interest rate of 9 percent, but the interest is paid semiannually. Bond B-a bond with 12 years left to matunity that has an annual coupon interest rate of 9 percent, but the interest is paid semiannually. Bond C-a bond with 19 years left to maturity that has an annual coupon interest rate of 9 percent, but the interest is paid semiannually. What would be the value of these bonds if the market discount rate were a. 9 percent per year compounded semiannually? b. 7 percent per year compounded semiannually? C. 15 percent per year compounded semiannually? d. What observations can you make about these results? + + . If the market discount rate wore 9 percent per year compounded somiannually, the value of Bond Ans (Round to the nearest cent)

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