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Your client has been offered a 10 -year, $1,000 par value annual bond with a 8 percent coupon rate and a YTM of 12%. Answer

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Your client has been offered a 10 -year, $1,000 par value annual bond with a 8 percent coupon rate and a YTM of 12\%. Answer Q1-Q4. 1. The bond is a discount bond or premium bond? 2. What should be the price of the bond? 3. What is the current yield on the bond? 4. What is the capital gains yield of on the bond

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