Eon Satellite Corporation (ESC) has an issue of 10-year, 6% annual coupon bonds outstanding. The bonds, which were originally issued 20 years ago, have a face value (FV) of $1,000, a yield to maturity (YTM) of 6%, and are noncallable. What is the current market price of ESCs bonds? (Note: Do not round your intermediate calculations.)

$1,250.00

$1,000.00

$850.00

$1,100.00

Are the bonds of Eon Satellite Corporation selling at a discount, at par, or at a premium?

Premium

Par

Discount

What is the current yield on Eon Satellite Corporations outstanding bonds?

4.80%

5.45%

6.00%

7.06%

What is the expected one-year capital gain yield on the bonds of Eon Satellite Corporation?

9.00%

0.00%

12.00%

6.00%