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Your company wants to raise $0.5 million by issuing 25-your 2010-coupon bonds. If the yield to maturity on the bonds will be 85 (annual compounded

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Your company wants to raise $0.5 million by issuing 25-your 2010-coupon bonds. If the yield to maturity on the bonds will be 85 (annual compounded APR), what total face value amount of bonds must you issue? The total tace value amount of bonds that you must issue is $. Round to the nearest cent) Suppose a seven-year. $1,000 bond with a 7.9% coupon rate and semiannual coupons is trading with a yield to maturity of 6.62% a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.44% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. C. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. b. If the yield to maturity of the bond rises to 7.44% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is $. (Round to the nearest cent.)

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