You own a $1,000 Bond issued by Walmart that will mature in five years. It carries a coupon (interest) rate of 4.50%. You have decided, however, that you want to sell this Bond to create some liquidity. You note that bonds with similar risk profiles are now being offered at a coupon (interest) rate of 2.75%.

Required:

Will this Bond sell for a Premium or a Discount? Why?

Calculate the sales price of the Bond. Show your work.