ABC Ltd issues a bond with 10.12% coupon rate and semi-annual coupon. It is known that the yield to

maturity is 9.22%, and the face value for the bond is at $1000. However, as a potential investor, you do

not know the maturity for the bond.

a) Briefly explain whether the bond is currently trading at a discount, at par, or at a

premium. (6 marks)

b) If the time to maturity is 10 years, what is the bond price? (9 marks)