HCA Inc. bonds have a 4.5% coupon rate with semiannual coupon payments. They were originally issued as 10-year bonds but now have 8 years remaining until maturity. The bonds have a par value of $1,000.

a. If the bonds are currently trading for $1020, will the YTM be greater than, equal to, or less than the coupon rate? Provide a conceptual explanation for your answer. [1 point]

b. Calculate the yield-to-maturity (YTM) on HCA bonds if they are currently trading for $1020. [4 points]