Assume the zero$-$coupon yields on default$-$free securities are as summarized in the following table:

bond with annual coupons of $5\%$ and a face value of $$1,000.$

a$.$ Without doing any calculations, determine whether this bond is trading at a premium or at a discount. Explain.

b$.$ What is the yield to maturity on this bond?

c$.$ If the yield to maturity on this bond increased to $5\mathrm{.}30\%,$ what would the new price be$?$

a$.$ Without doing any calculations, determine whether this bond is trading at a premium or at a discount. Explain.

The bond is trading at a premium because its yield to maturity is a weighted average of the yields of the zero$-$coupon bonds. $($Select

from the drop$-$down menu.$)$

b$.$ What is the yield to maturity on this bond?

The yield to maturity on this bond is

$\%.($Round to two decimal places.$)$

Data table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$