Given a coupon bond B = {F = $100, C = $5, T = 3 yrs}. Please do provide formula and/or steps for credits.

1. What is the coupon rate of this bond?

2. Its current purchase price is P_0. If it is sold at par (face value), i.e., P₀ = F, what is the Yield to Maturity (%)? What is the current yield? [Note: compare your answers here with part a on coupon rate.]

Note : You can use the online calculator (http://www.moneychimp.com/calculator/popup/calculator.htm) Bond Yield part to obtain the final answers. But still please provide the formula you use and show how use the given numbers of this question in the formula.

3. If P₀ = $102.7751 instead, what is the Yield to Maturity (%)? If P₀ = $97.3270 instead, what is the Yield to Maturity (%)?

If your personal discount rate is 6% for an investment, youd like to buy it at $97.3270 or $102.7751? And why?