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Yellow Inc. offers bonds with a coupon rate of 6%. The coupon paid annually and the market's required yield to maturity (YTM) is 8%.

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Yellow Inc. offers bonds with a coupon rate of 6%. The coupon paid annually and the market's required yield to maturity (YTM) is 8%. The par value of the bond is $800 and the bond matures in 5 years. a) What is the theoretical value of the bonds? b) Determine whether these bonds are traded at par, discount or premium! (We assume an efficient financial market.) There are no separators between thousands of magnitude: no spaces, no dots.

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