Question: A bond issued by ABC Corp. has a face value of $1,000, coupon rate of 6%, price of $1,029.13 and time to maturity of one

A bond issued by ABC Corp. has a face value of $1,000, coupon rate of 6%, price of $1,029.13 and time to maturity of one year.

a. What is its current yield?

b. What is its yield to maturity?

c. Is this a discount, premium or par bond? Why?

d. Now suppose instead of having one year to maturity, it has two year to maturity and is priced $1,057.40. What is the current yield and the yield to maturity?

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