Given below is information about three RM $5000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%.

Bond Coupon Rate (%) Maturity (years)

1 10 5

2 12 10

3 14 15

B. Using the above table, if the company decided to pay coupon annually (12%), calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value.

C. Is there any difference in the value of semiannually and annually.