QUESTION TWO The bonds of Microhard, Inc. carry a 10% annual coupon, have a K1,000 face value, and mature in four years. Bonds of equivalent risk yield 15%. Required i. What is the market value of Microhard's bonds? (3 Marks) ii. Are the bonds selling at a discount, at par or at a premium? (3 Marks) iii. Why would investors pay more, less or the face value for this bond? (2 Marks) iv. If Microhard, Inc. bonds make semiannual payments instead of annual payments what would their price be? (2 Marks)