(Bond valuation-zero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 3 years from their purchase. To pric bonds competitively with other bonds of equal risk, it is determined that they should yield 6 percent, compounded annually. At what price should the Latham Corporation sell these bonds? The price of the Latham Corporation bonds should be $ (Round to the nearest cent.) (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 if interest rate market discount rate) changed. The three bonds are Bond Aa bond with 5 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually. Bond B-a bond with 11 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually. Bond C-a bond with 16 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually. What would be the value of these bonds if the market discount rate were a. 8 percent per year compounded semiannually? b. 6 percent per year compounded semiannually? c. 17 percent per year compounded semiannually? d. What observations can you make about these results? a. If the market discount rate were 8 percent per year compounded semiannually, the value of Bond A is $ Question Viewer (Round to the nearest cent.) (Yield to maturity) Assume the market price of a 6-year bond for Margaret Inc. is $900, and it has a par value of $1,000. The bond has an annual interest rate of 7% that is paid semiannua the yield to maturity of the bond? The yield to maturity of the bond is %. (Round to two decimal places.) (Current yield) Assume you have a bond with a semi-annual interest payment of $35, a par value of $1,000, and a current market price of $770. What is the current yield of the bond? The current yield of the bond is %. (Round to two decimal places.)