Question: Assume you are interested in adding a bond to your investment portfolio. You decided to buy ACME INC's corporate bond. ACME's 30-year bond was issued

Assume you are interested in adding a bond to your investment portfolio. You decided to buy ACME INC's corporate bond. ACME's 30-year bond was issued 5 years ago with a par value of $1,000. The bond has a coupon rate of 9% per annum with semiannual interest payments. The yield to maturity on that bond of 11%.

What is the current price of that bond and how is the bond priced (premium, discount, or par)?

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