Is this bond selling at a premium or discount

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Question - What is the price of a 6% bond in the following scenarios. The bond has 10 years left to maturity.

The current rate of new bonds in the market is 4%

Par Annual Coupon $ Rate Term Price (solve for present value)

Is this bond selling at a premium or discount?

The current rate of new bonds in the market is 8%.

Par Annual Coupon $ Rate Term Price (solve for present value)

Is this bond selling at a premium or discount?

Reference no: EM132763462

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