How can I work this out to understand it better?

How can I work this out to understand it better?

You are asked to value the following corporate bond issued by ABCD Corp.: Face value = $1,000. Annual coupon (compounded semiannually) = $30. Maturity = 10 years.

You came to the conclusion that the (Annual Percentage) rate of return you are entitled to earn would be the rate that earns the SAME default spread over TODAY’S risk-free rate as the average default spread for the bonds of the “BB+” S&P rating.

A)   What should be today’s price of the bond?

B)   Instead, today’s Wall Street Journal shows that today’s price of the bond is $910.75.

a.     What is today’s Yield to Maturity (YTM) for the bond?

b.    Should you buy the bond? Why or why not?

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