Response to the following problem:
Compute the price of the following 8% bonds:
a. $100,000 quoted at 92.6 c. $100,000 quoted at 77.75
b. $100,000 quoted at 102.5 d. $100,000 quoted at 110.375
Which bond will have the least interest expense over its life?
Which bond will have the most interest expense? Explain.