Question

A $1,000 bond has a coupon rate of 7% that is paid on a semi-annual basis,...

A $1,000 bond has a coupon rate of 7% that is paid on a semi-annual basis, The bond will mature in 5 years and has a current yield to maturity of 5%.
What is the price of the bond?

(A)______________What is the amount of the annual interest payment paid to the bondholder?

(B)______________Is this bond trading at a discount or a premium?
(C)______________What is the price of the bond?

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