Daimler AG issued a new ten-year EUR bond with a 5.25% annual coupon which is trading at a yield of 4.78% two years after the issuance date. Calculate the price you would you expect to pay for this bond and whether it is trading at a premium or discount.

Answer rating: 100% (QA)

Calculating Bond Price and PremiumDiscount Heres how to calculate the price you would expect to pay ... View the full answer