rate of return 5.5%

Question 12 A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays $55 interest annually and matures in three years. The market price of the bond is $1013.6. Required: a. What is the original price of the bond? (4 marks) marks (4 marks) b. Calculate the current yield of the bond. (4 marks) c. Is bond trading at the discount price? Justify your answer. 25 TTT Arial 3 (12pt) T