d. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 1 year from now? What is the expected capital gains yield for each bond? What is the expected total return for each bond? Bond A Bond B Bond C Basic Input Data Years to maturity Periods per year Periods to maturity Coupon rate 5 Par value 3 Periodic payment 7 Yield to maturity B 5 Clifford Clark is a recent retiree who is interested in Investing some of his savings in corporate bonds. His 6 financial planner has suggested the following bonds: 7 8 Bond A has a 7% annual coupon, matures in 12 years, and has a $1,000 face value 9 Bond B has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. 10 Bond C has an 11% annual coupon, matures in 12 years, and has a $1,000 fnce value. 11 Each bond has a yield to maturity of 9%. 12 13 2. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount, 14 or at par. 15 bond A is trading at discount 16 bond B is trading at par 17 bond C is trading at premium 18 19 20 21 22 b. Calculate the price of each of the three bonds. 23 24 Basic Input Data Bond A Bond B Bond c 25 Years to maturity 12 12 12 26 Periods per year 1 1 27 Periods to maturity 12 12 12 28 Coupon rate 7% 9% 11% 29 Par value $1,000 $1,000 $1,000 30 Periodic payment 70 $90 $110 31 Yled to maturity 9% 9% 9% 32 1 an