Alpha Ant is a famous Canadian company operating in the gaming industry. For years the firm has been developing an innovative technology to integrate augmented reality on its digital platform. To finance the project, the company plans to issue a new bond: the Metaverse Bond. The bond has a nominal value of $100, a maturity of 5 years and pays an annual coupon of 5%. Canadian bond interest rates are shown below. Alpha Ant has a rating of AA+ which corresponds to a credit spread of 1%. Year 1 2 3 4 5 Canadian Gov bond rate 4.00% 4.30% 4.40% 4.60% 4.50%

What kind of bond is the metaverse bond?

A. Par bond B. Discount bond C. Premium bond D. There's not enough information

Please show calculations