For each of the following situations, identify whether a bond would be considered a premium bond, a

Question:

For each of the following situations, identify whether a bond would be considered a premium bond, a discount bond, or a par bond.
a. A bond’s current market price is greater than its face value.
b. A bond’s rate is equal to its yield to maturity.
c. A bond’s rate is less than its required rate of return.
d. A bond’s rate is less than its yield to maturity.
e. A bond’s rate is greater than its yield to maturity.
f. A bond’s fair present value is less than its face value.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...