As you look for alternative investments to include in your stock portfolio, you find a bond with 3% coupon payment and a 10 year maturity. You are deciding if this investment makes sense to add to your holdings.

A. If you decide to sell the bond in 5 years (with 5 years of coupon payments left), what price will you receive for the bond at that time? Assume currently interest rates are 6% at that time.

B. At the five year mark above, will the bond be trading at a premium or a discount? How would you answer this question without calculations?