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A 10-year annual coupon bond was issued four years ago at par. Since then the bonds yield to maturity (YTM) has increased from 7% to
A 10-year annual coupon bond was issued four years ago at par. Since then the bonds yield to maturity (YTM) has increased from 7% to 9%. Which of the following statements is true about the current market price of the bond? a. The bond is selling at a discount b. The bond is selling at par C. The bond is selling at a premium d. The bond is selling at book value e. Insufficient information
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
