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Company. has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000

Company. has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $1,022. Interest is paid semiannually.

.1Calculate the yield to maturity. What does this YTM represent.

2.Why is the bond above selling at a premium? I am not looking for P>Face Value. 2 -3 sentences.

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