$($Bond valuation$)$ 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 $11$ percent, but the interest is paid semiannually.

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

Bond $C-$a bond with $18$ years left to maturity that has an annual coupon interest rate of $11$ percent, but the interest is paid semiannually.

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

a$.11$ percent per year compounded semiannually?

b$.4$ percent per year compounded semiannually?

c$.18$ percent per year compounded semiannually?

d$.$ What observations can you make about these results?

a$.$ If the market discount rate were $11$ percent per year compounded semiannually, the value of Bond $A$ is $ $($Round to the nearest cent.$)$

If the market discount rate were $11$ percent per year compounded semiannually, the value of Bond $B$ is $ $($Round to the nearest cent.$)$

If the market discount rate were $11$ percent per year compounded semiannually, the value of Bond $C$ is $$1000.($Round to the nearest cent.$)$