Assume that the Financial Management Corporation's

$1 comma 0001,000-par-value

bond has a

5.900 %5.900%

coupon, matures on May 15, 2023, has a current price quote of

106.024106.024

and a yield to maturity(YTM) of

4.433 %4.433%.

Given this information, answer the following questions:

a.What is the dollar price of the bond?

b.What is the bond's current

yield?

c.Is the bond selling at par, at a discount, or at a premium? Why?

d.Compare the bond's current yield calculated in part b to its YTM and explain why they differ.