2. A bond has the following information

- Par value: $1,000

- Maturity: seven years

- Coupon rate: 10.5% with semi-annual coupon payment

- Yield to maturity: 8.5%

a) Is this bond currently trading at a discount, at par, or at a premium? Explain [7.5marks]

b) If the YTM rises to 9%, at what price will the bond trade? [7.5marks]

2. A bond has the following information Par value: $1,000 . Coupon rate: 10.5% with semi-annual coupon payment a) Is this bond currently trading at a discount, at par, or at a premium? Explain b) If the YTM rises to 9%, at what price will the bond trade? [7.5marks] Maturity: seven years Yield to maturity: 8.5% 7.5marks