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1. You are considering the following corporate bond: Par value Coupon rate Time to maturity Yield to maturity $1,000 6% 5 years 8% a. (3

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1. You are considering the following corporate bond: Par value Coupon rate Time to maturity Yield to maturity $1,000 6% 5 years 8% a. (3 marks) What is the current bond price if the coupons are paid semi-annually? b. (2 marks) Is the bond a discount or premium bond? Explain. c. (2 marks) Calculate its current yield

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