Mercure Corporation has a premium bond making annual payments. The bond pays a coupon of 8 percent and has 13 years to maturity. The Hermes Company has a bond making annual payments. This bond pays a coupon of 6 percent and also has 13 years to maturity. If interest rate in the market is 7% and remains unchanged during 13 years, what do you expect the price of these bonds to be in - 1 year from now? - In 8 years? - In 12 years? Explain the changes