Discount bond or premium bond or par bond

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Reference no: EM131984440

A four-year bond has an 8% coupon rate and a face value of $1,000. If the current price of the bond is $870.51, calculate the yield to maturity of the bond (assume annual interest payments). Also, indicate whether the bond is a discount bond or a premium bond or a par bond.

Reference no: EM131984440

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