The ACME Company has a $1,000 8% coupon bond. The bond makes semiannual interest payments and matures in 15 years. The yield to maturity on this bond is 7.5%.

What is the amount of each coupon payment?

A) $75

B) $40

C) $120

D) $80

What is the current selling price of ACMEs bond?

A) $1045.

B) $691.

C) $1000.

D) $957.

Given the information on ACMEs bond, then this bond will trade at:

A) par.

B) a discount.

C) a premium.

D) None of the above