Leeggara Company has an issue of 8-year, 11% annual coupon bonds outstanding. The bonds, which were originally issued 12 years ago, have a face value (FV) of $1,000, a yield-to-maturity (YTM) of 7%, and are noncallable. What is the current market price of Leeggara bonds ?

$1,053.02

$1,362.74

$1,238.85

$1,548.56

Are the bonds Leeggara Company selling at a discount, at par, or at a premium?

Premium

Par

Discount

What is the current yield on Leeggara outstanding bonds?

10.45%

8.07%

7.10%

8.88%

What is the expected one-year capital gain yield on the bonds of Leeggara Company?

-2.21%

-1.71%

-1.88%

-1.50%