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

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Gregory Rentas is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds Bond A has a 8.00 annual coupon, matures in 13 years, and has a si,000 face value. Bond B has a 9.00% annual coupon, matures in 13 years, and has a si,000 face value. Bond Chas a 10.00% annual coupon, matures in 13 years, and has a si,000 face value. Each bond has a yield to maturity of 8% Requirements a. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, at a discount. or at par. b. Calculate the price of each of the three bonds Basic Input Data Bond A Bond B Bond C Years to maturity 13 13 Periods per year Periods to maturity 13 13 13 8% 9% Coupon rate 10% S 1.000 $1.000 Par value SI,000 Periodic payment S80 S90 S100 Yield to maturity N% N% N 8%

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