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13 13 Disc. 3- Bond price and yield Mohiuddin Khan A corporate bond with a face value of $1,000 was sold in the market for

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13 13 Disc. 3- Bond price and yield Mohiuddin Khan A corporate bond with a face value of $1,000 was sold in the market for $1285 today. At this price, the yield to maturity was 4.70%. The bond's coupon rate is 6.50% and it matures on 10/30/2028. Why would anyone in his/her sound mind buy the bond at this price, yet many people did? Explain why. (10 points)

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