The bonds of Microhard, Inc. carry a 10% annual coupon, have a $1,000 face value, and mature in four years. Bonds of equivalent risk yield 15%. What is the market value of Microhard's bonds? Are the bonds selling at a discount, at par or at a premium? Why would investors pay more, less or the face value for this bond? b) If Microhard, Inc.' bonds make semiannual payments instead of annual payments what would their price be? Again referring to part a), Microhard is having cash flow problems and has asked its bondholders to accept the following deal: The firm would like to make the next three coupon payments at half the scheduled amount, and make the final coupon payment be $250. If this plan is implemented, what would the market price of the bond be? (Continue to assume a 15% required return.)