E 14-1 Bond valuation L014-2 3. Your investment department has researched possible investments in corporate debt securities. Among the avail- able investments are the following $100 million bond issues, each dated January 1, 2021. Prices were determined by underwriters at different times during the last few weeks. Company Bond Price Stated Rate 1. Corp. $109 million 11% 2. DD Corp. $100 million 10% GG Corp. $ 91 million 9% Each of the bond issues matures on December 31, 2040, and pays interest semiannually on June 30 and December 31. For bonds of si f similar risk and maturity, the market yield at January 1, 2021, is 10%. Required: Other things being equal, which of the bond issues offers the most attractive investment opportunity if it can be purchased at the prices stated? The least attractive? Why? Determine the price of a SI million bond issue under each of the following independent assumptions: Maturity Interest Paid Stated Rate Effective (Market) Rate 10 years annually 10% 10 years semiannually 10 years semiannually 4. semiannually 12% semiannually E 14-2 Determine the price of bonds in various situations L014-2 12% 2. 3. 10% 12% 12% 10% 10% 12% 20 years 20 years 5. 12%