Bond prices and yields Assume that the Financial Management Corporations

$1,000-par-value bond had a 5.700% coupon, matures on May 15, 2023, has a

current price quote of 97.708, and has a yield to maturity (YTM) of 6.034%. 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.