Requirement 1. If the market interest rate is 9.25 percent when Yukon Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 10 percent bonds issued when the market interest rate is 9.25 percent will be priced at par (maturity) value . They are unattractive in this market, so investors will pay less than maturity value to acquire them Requirement 2. If the market interest rate is 10.5 percent when Yukon Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 10 percent bonds issued when the market interest rate is 10.5 percent will be priced at a discount attractive in this market, so investors will pay more than maturity value to acquire them. They are