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Ten years ago, Signal Inc. issued twenty-five-year 8% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have decreased

Ten years ago, Signal Inc. issued twenty-five-year 8% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have decreased and the yield to maturity on the bonds is now 7%. Given

this information,

1. what is the price today for a Signal bond?

2. Is it a discount or premuim bond? and why?

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