Question: A bond has a maturity value of $10,000 payable in 10 years. These bonds have a 7%/a coupon rate payable semi-annually, and the market yield

A bond has a maturity value of $10,000 payable in 10 years. These bonds have a 7%/a coupon rate payable semi-annually, and the market yield was 6%/a when the bonds were purchased.
Required:
a. Is this a discount bond or a premium bond?
b. Compute the amount required to purchase this bond at the beginning of the 10-year period.

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