Question: Part 1 assignment 70000 Can you please answer the following questions - (1)Why would someone buy a bond at a premium? (2)What is discount rate

Part 1 assignment 70000

Can you please answer the following questions -

(1)Why would someone buy a bond at a premium?

(2)What is discount rate with bonds? How does it matter and how does it impact the calculations?

(Show me the steps please)

Problem 3

A $1,000 par value bond that pays interest annually just paid $75.8 in interest. What is the coupon rate?

Problem 4

An 6% coupon, 14-year annual bond is priced at $994. What is the current yield for this bond?

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