Question: 4) Suppose a three-year, $100 par value bond with a 8% coupon rate and semiannual coupons is trading with a yield to maturity of 10%.

4) Suppose a three-year, $100 par value bond with a 8%

4) Suppose a three-year, $100 par value bond with a 8% coupon rate and semiannual coupons is trading with a yield to maturity of 10%. a) What is the current price of this bond? Is it trading at a discount, at par, or at a premium? b) What will be the price of the bond, if yield to maturity decreases to 6%

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