A $1,000,000 issue of 10-year bond redeemable at par offers 8.5% coupons payable semi-annually with a yield at 6.3% compounded monthly. Answer the following questions, and choose the closest answer from the possible choices following each question:

What is the market yield of the bond? (Express in percentage with four decimal places i.e., .0001%)

Answer 1

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What is the coupon rate (or bond rate) of the bond? (Express in percentage with four decimal places i.e., .0001%) Answer 2

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Which rate over each payment interval do you use for calculating the purchase price manually using the formula approach? (Express in percentage with four decimal places i.e., .0001%)

Answer 3

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What is the purchase price of the bond?

Answer 4

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This is a bond selling at ______ (choose from "par," "a premium," or "a discount")