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Gregory Rentas is a recent retiree who is in terested in investing some of his savings in cerperate bonds. His financial planner has suggested the

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Gregory Rentas is a recent retiree who is in terested in investing some of his savings in cerperate bonds. His financial planner has suggested the folloning bonds: Bond A has a 8.00% annual coupon, matures in 13 years, and has asl,000 face value. Bond Bhas a 9.00% annual coupon, matures in 13 years and has a si000 face value. Bond Chas a 10.00% annual coupon, matures in 13 years, and has a Sl 000 face value. Each bend has a yield to maturity of 8% a. Before calculating the prices of the bonds, indicate whether each bond is trading at a ata discoun or at par Calculate the price of each of the three bonds. Basic Input Data Bond A Bond B Bend C Years to maturity 13 13 13 Periods per year Periods to maturity 13 13 13 Coupon rate 8% 10% Par value S1 000 S1.000 S1.000 Periodic payment SI000 Yield to maturity 8% e. Calculate the current yield for each of the three bonds using the data described in item b. Current yield-Annual coupon /Price Bond A Bond B Bend C Current yield If the yield to maturity for each bond remains at9%,what will be the price of each bend I year frea What is the expected capital zains yield for each bond? What is the expected total return for each bend? Basic Input Data Bond A Bond B Bond C Years to maturity 12 12 12 Periods per year Periods to maturity 12 12 12 Coupon rate 11% Par value SI 000 $1,000 S1.000 Periodic payment $70 $110 Yield to maturity Espected CG Yield Espected Total Return Mr. Gregory Rentasis considering another bond, Bond D. has an 0% semiannual coupon and a ie..itpays a S40 coupon every 6 months) Bend D is scheduled to mature in9 years and has a prio Basic Input Data Bond D

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