Doisneau 20-year bonds have an annual coupon interest of 7 percent, make interest payments on a semiannual basis, and have a $1000 par value. If the bonds are trading with a market's required yield to maturity of 16 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?

a. If the bonds are trading with a yield to maturity of 16%, then:

The bonds should be selling at a because the bond's coupon rate is than the yield to maturity of similar bonds.

Question:

The price of the bonds is $ enter your response here. (Round to the nearest cent.)