Question: BA Corp is issuing a 5 year bond with a coupon rate of 8 percent. The interest rate for similar bonds is currently 6 percent.

BA Corp is issuing a 5 year bond with a coupon rate of 8 percent. The interest rate for similar bonds is currently 6 percent. Assuming annual payments, what price would you pay for the bond? Is it trading at a premium or a discount? Round your answer to 2 decimal places.

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