Which of the following bonds trades at a greater discount to its present value? Explain how you arrived at your answer. Bond A's market value is $1,050, it pays an annual coupon of $100, and it will mature in three years, paying $1,000. The applicable discount rate is 7%. Bond B's market value is $1,000, it pays an annual coupon of $70, and it will mature in two years, paying $ 1,000. The applicable discount rate is 6%.