Alert dont submit AI generated answer. 3. You work at an investment bank and are advising a firm that wishes to issue a 10 yearbond. You have researched other similar firms and have found that bonds issued bythose other companies tend to pay on average a 6% coupon and have a 9% yield tomaturity. The company wishes to mimic these companies and issue a bond with a $100face value and annual coupon with an APR of 6%.a. How much would you tell your client they should expect to be able to sell eachbond for?b. Your client is disgusted at the idea of their bonds trading at a discount thinking itsignifies financial weakness and makes borrowing more expensive. What is thelowest coupon rate you could suggest that you would expect the bond to nottrade at a discount?c. What do you think of your clients reasoning that the a lower coupon rate makesborrowing more expensive? What are some real consequences (what actually.changes) if they select the higher coupon rate.

Price of bond is the present value of coupon payment plus present value of par value of the bond.

B. You work at an investment bank and are advising a firm that wishes to issue a 10 yea bond. You have researched other similar firms and have found that bonds issued by those other companies tend to pay on average a 6% coupon and have a 9% yield to maturity. The company wishes to mimic these companies and issue a bond with a $100 face value and annual coupon with an APR of 6%. a. How much would you tell your client they should expect to be able to sell each bond for?