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[Solution] Bond prices and yields Assume that the Financial Management Corporation's $1,000-par-value bond had a 5.700 \% coupon, matures on May 15,2023,

Question: Bond prices and yields Assume that the Financial Management Corporation's $1,000-par-value bond had a \(5.700 \%\) coupon, matures on May 15,2023, has a current price quote of 97.708, and has a yield to maturity (YTM) of \(6.034 \%\). Given this information, answer the following questions:

  1. What was the dollar price of the bond?
  2. What is the bond's current yield?
  3. Is the bond selling at par, at a discount, or at a premium? Why?
  4. Compare the bond's current yield calculated in part b to its YTM and explain why they differ.

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