Natural Gas Producers Inc. (NGPI) has an issue of 7-year, 8% annual coupon bonds outstanding. The bonds, which were originally issued 15 years ago, have a face value (FV) of $1,000, a yield-to-maturity (YTM) of 10%, and are noncallable. What is the current market price of NGPIs bonds?

$767.24

$902.63

$1,128.29

$992.89

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

Premium

Discount

Par

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

7.09%

8.86%

10.43%

8.06%

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

0.91%

1.14%

1.34%

1.03%