Natural Gas Producers Inc. (NGPI) 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 NGPIs bonds? (Note: Do not round your intermediate calculations.)

$850.00

$1,000.00

$1,250.00

$1,100.00

Are the bonds of Natural Gas Producers Inc. selling at a discount, at par, or at a premium?

Discount

Par

Premium

What is the current yield on Natural Gas Producers Inc.s outstanding bonds?

6.00%

5.45%

7.06%

4.80%

What is the expected one-year capital gain yield on the bonds of Natural Gas Producers Inc.?

12.00%

0.00%

6.00%

9.00%