Question $6$:

(Related to Checkpoint 9.3) (Bond valuation) Doisneau 24-year bonds have an annual coupon interest of 7 percent, make interest payments on a semiannual basis, and have a Sl ,000 par value. Ifthe bonds are trading with a markets required yield to maturity of 14 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds? a. If the bonds are trading with a yield to maturity of 14%, then (Select the best choice below) there is not enough information to judge the value of the bonds. the bonds should be selling at a premium because the bonds coupon rate is greater than the yield to maturity of similar bonds. the bonds should be selling at a discount because the bonds coupon rate is less than the yield to maturity of similar bonds. the bonds should be selling at par because the bond's coupon rate is equal to the yield to maturity of similar bonds. b. The price of the bonds is (Roundto the nearest cent)