Company A issued a 5 year 4.5% coupon bond with a stated value (par or face) of $15,000,000 on December 31, 2020 when the market rate of interest (yield to maturity) was 5%. The bond pays interest semiannually.

1. Was Company As bond issued at a discount, premium or par and why?

2. What is the price of the bond [show your financial calculator syntax for credit]?

The bond price is the present value of the future bond cash payments using the semi-annual market interest rate (YTM).

3. Now assume the above bond was settled (purchased) on 3/31/2021.

a. What is the cash (dirty) price of the bond [show your work for credit]?

b) As discussed in class, how would the ask (quote or clean) price of the bond be listed [show your work for credit]?