economicz

par  Historical Cost of investment
1000  900
So am I right in saying it is a discount Bond.
This means YTM
YTM=5%, Coupon=6%
Par * Coupon = 60 (1000 * .06)
Face * YTM = 900 * .05 = 45
Amortization of Bond Discount = 60 - 45 = 15 Next Period Investment Cost = 900 + 25 = 915