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Assume that the Financial Management Corporations $1,000-par-value bond had a 6.90% coupon, matured on May 15, 2020, had a current price quote of 103.25, and

Assume that the Financial Management Corporations $1,000-par-value bond had a 6.90% coupon, matured on May 15, 2020, had a current price quote of 103.25, and had a yield to maturity (YTM) of 6.15%.

Given this information, answer the following questions:

a. What was the dollar price of the bond?

b. What is the bonds current yield?

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

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

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