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Is the bond selling at a premium or at a discount

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Question 1: Consider a bond with a coupon rate of 7.5% and annual coupons. The par value is $1,000, and the bond has 6 years to maturity. The yield to maturity is 9 percent. What is the value of the bond? Is the bond selling at a premium or at a discount? Explain.

Question 2: Suppose you are reviewing a bond that has a 8.5% annual coupon and a face value of $1,000. There are 19 years to maturity, and the yield to maturity is 6%. What is the price of the bond that is being offered to you? Is the bond being offered at a premium or at a discount? Explain.

Question 3: Ohio Stell Inc. has a 7 percent coupon bond on the market with 9 years left to maturity. The bond makes annial payments and currently sells for $815.25. What is the yield of maturity?

Reference no: EM132495405

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