You are examining three bonds with a par value of $1 000 (you receive $ 1 000 at maturity) and are concerned with what would happen to their market value if interest rates (or the market discount rate) changed. The three bonds are:

Bond A a bond with 5 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually.

Bond B a bond with 11 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually.

Bond C a bond with 16 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually.

What would be the value of these bonds if the market discount rate were

a. 8 percent per year compounded semiannually?

b. 6 percent per year compounded semiannually?

c. 17 percent per year compounded semiannually?

d. What observations can you make about these results?