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 a $9\%$ 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 an $8\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

Each bond has a yield to maturity of $8\%.$

any. If an answer is zero, enter $"0".$

Download spreadsheet Bond Valuation$-3$d$5971.$xlsx

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

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.

Price $($Bond A$)$: $

Price $($Bond B$)$: $

Price $($Bond C$)$: $

Current yield $($Bond A$)$:

$\%$

Current yield $($Bond B$)$:

Current yield $($Bond C$)$:

d$.$ If the yield to maturity for each bond remains at $8\%,$ 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$)$: $