Question 12

One of your friends asks you if there are any bonds that he should invest in. You told him that you have been checking out this one particular bond a $1000 6% bond with semi-annual coupons that had a quoted price of $1358.52 on September 21. On September 28 of the same year, that same bond you were checking out now has a quoted price of $1356.15. The next coupon is paid on December 14 of the same year.

1. What is the price of this bond on December 14 immediately after the coupon is paid?
2. Was the bond ISSUED at a premium or at a discount?

Please include explanation throughout your solutions and clearly label what all the variables are. Thanks.

*No additional information

*All the same year as listed above