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A company has an outstanding bond with the following characteristics: Coupon Rate = 8.00% Years to Maturity = 25 years Face Value = $1,000 Current

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A company has an outstanding bond with the following characteristics: Coupon Rate = 8.00% Years to Maturity = 25 years Face Value = $1,000 Current Market Interest Rate = 5.50% A. Calculate the price of the bond assuming interest payments are semiannual. Is this a discount bond, premium bond, or par bond? B. Calculate the yield to maturity you would earn if you purchased this bond for $1,075 and held it until it matures. Edit View Insert Format Tools Table

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