Problem $7-19$

Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His

financial planner has suggested the following bonds:

$8$ Bond A has a $7\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

$*$ Bond B has a $9\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

$10$ Bond C has an $11\%$ annual coupon, matures in $12$ years, and has a $$1,000$ face value.

$11$ Each bond has a yield to maturity of $9\%.$

$1$o a$.$ Belore calculating the prices of the bonds, Indicate whether each bond is trading at a premium, at a discount.