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Consider the following four corporate bonds that have semiannual compounding: Bond #1 Price $1000.00 Coupon Rate 8% Years to Maturity 5 #2 Price $932.05 Coupon

Consider the following four corporate bonds that have semiannual compounding:

Bond

#1 Price $1000.00 Coupon Rate 8% Years to Maturity 5

#2 Price $932.05 Coupon Rate 7% Years to Maturity 10

#3 Price $1067.95 Coupon Rate 9% Years to Maturity 10

#4 Price $1098.96 Coupon Rate 9% Years to Maturity 20

Which of these bonds sells at a discount?

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