Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds:

Bond A has an $11\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

Bond $B$ has a $7\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

Bond $C$ has a $9\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

Each bond has a yield to maturity of $9\%.$

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Use a minus sign to enter negative values, if any. If an answer is zero, enter $"0".$

Download spreadsheet Bond Valuation$-$e$88$b$94.$xIsx

a$.$ Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, or at par.

Bond $A$ is selling at $3$ because its coupon rate is the going interest rate.

Bond $B$ is selling at because its coupon rate is the going interest rate. Bond $C$ is selling at $$ because its coupon rate is the going interest rate.

b$.$ Calculate the price of each of the three bonds. Round your answers to the nearest cent.

b$.$ Calculate the price of each of the three bonds. Round your answers to the nearest cent.

Price $($Bond $A)$: $

Price $($Bond $B)$: $

Price $($Bond C$)$: $

c$.$ Calculate the current yield for each of the three bonds. $($Hint: The expected current yield is calculated as the annual interest divided by the price of the bond.$)$ Round your answers to two decimal places.

Current yield $($Bond $A)$:

$\%$

Current yield $($Bond B$)$:

D

Current yield $($Bond C$)$:

b$)\%$

d$.$ If the yield to maturity for each bond remains at $9\%,$ what will be the price of each bond $1$ year from now? Round your answers to the nearest cent.

Price $($Bond $A)$: $

Price $($Bond $B$

Price $($Bond C$)$: $

What is the expected capital gains yield for each bond? What is the expected total return for each bond? Round your answers to two decimal places.

Bond $A$

Bond B

Bond C

Expected capital gains yield

$\%$

$\%$

$\%$