I need the 5 questions that are on the "reflecting on the world wide web" section that is on the scanned page I attached.
(See attached file for full problem description)
1) Yes, we can tell if the bond is selling at a premium or a discount from the information given. Bond Prices are listed as a percentage of par, therefore a bond with a price of 88.050 is selling at a discount, while a bond with a price 104.375 is selling at a premium.
2) Since the size is 1k, this means $1,000,000, and since the face value of a bond is usually $1,000, therefore ($1,000,000 $1,000) 1,000 bonds were issued.
The Price as a percent of par is 101.772, therefore each bond was sold at (101.772  10) = ...
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