Question: Assume that the Financial Management Corporation's $1,000-par-value bond had a 5.700% coupon, matured on May 15, 2017, had a current price quote of 97.708, and had 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.