10. The valuation of bonds

Booker Petroleum Refiners (BPR) has an issue of 7-year, 8% annual coupon bonds outstanding. The bonds, which were originally issued 15 years ago, have a face value (FV) of $1,000, a yield-to-maturity (YTM) of 10%, and are noncallable. What is the current market price of BPRs bonds?

$902.63

$992.89

$1,128.29

$767.24

Are the bonds of Booker Petroleum Refiners selling at a discount, at par, or at a premium?

Discount

Premium

Par

What is the current yield on Booker Petroleum Refinerss outstanding bonds?

10.43%

7.09%

8.86%

8.06%

What is the expected one-year capital gain yield on the bonds of Booker Petroleum Refiners?

1.14%

1.03%

0.91%

1.34%