Is the bond trading at par or at discount or premium

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Reference no: EM131976120

Given: 5% coupon rate on Waterton Corp. bond $1,000 par value of Waterton Corp. bond $1,015 market value of Waterton Corp. bond

a) What is the bond's current yield? Express the answer in the correct format to 2 decimal places, rounded properly.

b) Is the bond trading at par, or at a discount or a premium?

c) Have interest rates changed since the bond was issued? If so, or if not, how can you tell?

Reference no: EM131976120

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