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Part $1$

Bond prices and yields$$Assume that the Financial Management$$ Corporation's $$$$1$ comma $000-$par$-$value bond has a $5\mathrm{.}400\%$coupon$,$ matures on May$15,2027,$ has a current price quote of $96\mathrm{.}603$ and a yield to maturity$($YTM$)$ of $6\mathrm{.}295\%.$ Given this$$ information, answer the following$$ questions:

a$.$What was the dollar price of the$$ bond?

b$.$What is the $$bond$\text{'}$s current$$ yield?

c$.$Is the bond selling at$$ par, at a$$ discount, or at a$$ premium? $$ Why?

d$.$Compare the$$ bond's current yield calculated in part b to its YTM and explain why they differ.

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Part $1$

a$.$The dollar price of the bond is $$$

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