A bond with a par value of $1,000, a maturity of 14 years, and an annual interest or coupon rate of 9% sells in the market for $1,100. The market required return for a comparable bond at risk is 10%.

1. Is the bond selling at par, at a premium, or at a discount? explain

2. Is the bond being sold in the primary or secondary market? explain

3. List two reasons why a company or government issues or sells bonds. A. b. 

4. Calculate the bond's yield to maturity.

5. Show procedure or what you did to get to that performance.

6. Determine the value of the bond or the price paid, given the required rate of return.

7. Show procedure or what you did to determine the price.

8. Would you buy the bond? explain