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

in order to copy its contents into a spreadsheet.)

Maturity (years)	1	2	3	4	5
Zero-coupon YTM	7.00%	7.30%	7.50%	7.70%	7.80%

Consider a five-year, default-free bond with annual coupons of

8%

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 8.20%, what would the new price be?