a 1. Bonds 1) Assume that the Financial Management Corporation's 1,000 par-value bond has a 6% coupon rate, with interest paid annually, matures in 5 years, has a current price quote of 97.685. Given this information, answer the following questions. What is the dollar price of the bond? (2 Points) 1000*97.685=976.85 Is the bond selling at par, at a discount, or at a premium? (1 Point) The bod selling at a discount due to it being less than the par value. . What is the current yield? (2 Points) 1000*0.06-60/976.85=6.14% 2) Please read the article titled "CFOs Using Bond Proceeds to Pay Down Credit Lines, Debt" and answer the following two questions. Why are so many companies issuing bonds as opposed to drawing down on their lines of credit? (3 points) . How has the use of the proceeds by non-investment grade companies evolved over the past several months and why? (2 points)