Question
11. For a 20 year $1000 par value 8% annual coupon bond that is selling at a premium and makes semiannual coupon payments, which of
11. For a 20 year $1000 par value 8% annual coupon bond that is selling at a premium and makes semiannual coupon payments, which of the following is true?
A) The YTM of this bond is below 8%
B) The price of this bond is below its par value
c) Because this bond is selling at premium, it would be worth more than $1,000 at maturity.
D) The bond pays $160 in interest every six months.
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
