Company Ireland Blythe decides to issue bond payable to expand its business in fast growing region of the country. Below are some of the information concerning the bond issue.

Par Value = $1000

Coupon = 8%

Bo = $1080

Maturity = 6 years

Required Calculate the yield to maturity [YTM] of the bond

Calculate the current yield of the bond above

Using the information above and the yield to maturity, is it a bond selling at discount or at premium?

Note: If Bo is given instead of market value, we are assuming that the bond is properly valued on the market