Given: 5% coupon rate on Waterton Corp. bond $1,000 par value of Waterton Corp. bond $1,015 market value of Waterton Corp. bond
a) What is the bond's current yield? Express the answer in the correct format to 2 decimal places, rounded properly.
b) Is the bond trading at par, or at a discount or a premium?
c) Have interest rates changed since the bond was issued? If so, or if not, how can you tell?