Question: How to do this question?Especially question one! Thank you~ You are provided the following information about a bond that was issued 7 years ago. The

How to do this question?Especially question one! Thank you~ You are

How to do this question?Especially question one! Thank you~

You are provided the following information about a bond that was issued 7 years ago. The bond has a par value of $1000, has 8 years until maturity, and carries a 10% coupon with interest being paid annually. (a) What is the bond price today if we assume a theoretical discount rate of 0%? (2 marks) (b) What is the yield to maturity if we assume the bond is currently selling for par value? (2 marks) (c) If the bond is yielding 12% per annum, is it trading at a premium or a discount? Why? (3 marks) (d) What is the current yield to maturity if we assume the bond is currently priced at $896.64 and you are additionally informed that coupons are paid semi-annually

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