A $1000 par bond has a coupon rate of 7% and pays its fixed income payment twice annually. This bond has 14.0 years remaining until maturity. The current market rate (i.e., internal rate of return, book yield, or redemption yield) is 5%.

10. What is the yield to maturity of the bond?

11. What is the market value of this bond?

12. What is the current yield?

13. Is this bond a premium bond or a discount bond?9