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. Part (5 Marks) Suppose an eight-year, $1,000 bond with annual coupons has a price of $1,025 and a yield to maturity of 4.5% (i.e.

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. Part (5 Marks) Suppose an eight-year, $1,000 bond with annual coupons has a price of $1,025 and a yield to maturity of 4.5% (i.e. expressed as an effective annual rate). What is the bond's coupon rate? (Hint: Use the annuity formula to solve for the coupons and hence the coupon rate). Is this bond selling at a premium, at par or at a discount

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