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P9-10 (similar 120) Question HelpV it} {Related to Checkpoint 9.3} {Bond valuation} Doisneau 15year bonds have an annual coupon interest of 11 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a market's required yield to maturity of 1? percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds? a. lithe bonds are trading with a yield to maturity of 11%, then (Select the best choice below.) 0 A. there is not enough information to judge the value of the bonds. 0 B. the bonds should be selling at a discount because the bonds coupon rate is less than the yield to maturity of similar bonds. 0 C. the bonds should be selling at par becausethe bond's coupon rate is equal to the yield to maturity of similar bonds. 0 D. the bonds should be selling at a premium because the bonds coupon rate is greater than the yield to maturity of similar bonds. P9-4 (similar t0) Question HelpV C! {Related to Checkpoint 9.4} {Bond valuation} A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparablerisk bond is 13 percent. What would he the value of this bond if it paid interest annually? What would he the value of this bond if it paid interest semiannuallV? a. The value of this bond if it paid interest annually would he 35 _ (Round to the nearest cent.) P9-6 (similar to) Question Help (Related to Checkpoint 9.3) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 24 years with an annual coupon rate of 6 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 9.5 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 10.5 percent. What will be the price of these bonds if they receive either an A or a AA rating? a. The price of the Pybus bonds if they receive a AA rating will be $ (Round to the nearest cent.)