Musterl Manufacturing Corporation (MMC) has an issue of 12-year, 10% 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 9%, and are noncallable. What is the current market price of MMCs bonds? (Note: Do not round your intermediate calculations.)

$910.87

$1,339.51

$1,071.61

$1,178.77

Are the bonds of Musterl Manufacturing Corporation selling at a discount, at par, or at a premium?

Premium

Par

Discount

What is the current yield on Musterl Manufacturing Corporations outstanding bonds?

9.33%

7.47%

10.98%

8.48%

What is the expected one-year capital gain yield on the bonds of Musterl Manufacturing Corporation?

-0.33%

-0.39%

-0.27%

-0.30%