The selling price for a bond with a $1,000 par value and a 9 percent annual coupon rate is $1,100. It will mature in 14 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 10 percent. Please answer or calculate the following questions: You can answer in Spanish or English

1. Are the bonds selling at par value, discount or premium? Explain

2. Are the bonds selling in the primary or secondary market? Explain

3. Mention two reason why a corporate or government issue bonds

4. Calculate the bond yield to maturity. Show procedure.

5. Determine the price of the bond given the required rate of return. Show procedure.

6. Would you buy the bond? Explain