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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

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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 13% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond B has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. - Bond C has an 11% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 11%. 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-7003a8.x/58 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 Bond B is selling at Bond C is selling at because its coupon rate is because its coupon rate is because its coupon rate is the going interest rate, the going interest rate. 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 ): $ 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): 8% Current yield (Bond C): % d. If the yield to maturity for each bond remains at 11%, 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. e. Mr. Clark is considering another bond, Bond D. It has a 9% semiannual coupon and a $1,000 face value ( 6.6 , it pays a $45 coupon every 6 months). Bond D is scheduled to mature in 9 years and has a price of $1,150. It is also callable in 6 years at a call price of $1,080. 1. What is the bond's nominal yield to maturity? Round your answer to two decimal places

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