Question: ( Valuing bonds ) ( Related to Checkpoint 9 . 3 on page 3 0 2 ) Doisneau 2 0 - year bonds have a

(Valuing bonds)(Related to Checkpoint 9.3 on page 302) Doisneau 20-year bonds have a 10 percent annual coupon interest, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a 12 percent markets required yield to maturity, are these premium or discount bonds? Explain your answer. What is the price of the bonds?

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