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1. You are considering the following AA-rated, semi-annual coupon bond issued by Mata Toys. Par value Coupon rate Time to maturity Yield to maturity $1,000

1. You are considering the following AA-rated, semi-annual coupon bond issued by Mata Toys. Par value Coupon rate Time to maturity Yield to maturity $1,000 8% 7 years 6% a. Is the bond a discount or premium bond? Explain. (2 marks) b. What is the current bond price? (2 marks) c. Calculate its current yield. (2 marks)

You are considering the following AA-rated, semi-annual coupon bond issued by Mata Toys. a. Is the bond a discount or premium bond? Explain. ( 2 marks) b. What is the current bond price? ( 2 marks) c. Calculate its current yield. (2 marks)

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