What is the effective annual yield of a $1000 par value bond that pays semi-annual coupons, has an annual coupon rate of 5% with a current trading price of $950 and a time to maturity of 10 years? What will happen to the value of the bond if the YTM falls by 1%? Will it trade at a discount, par or premium? (Round to the nearest percent).
if it falls by one percent, then
Will it trade at a premium