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A 15-year BCE bond with a coupon rate of %8.0, paid semi-annually, was issued 5 years ago. Similar bonds are currently enjoying a yield to
A 15-year BCE bond with a coupon rate of %8.0, paid semi-annually, was issued 5 years ago. Similar bonds are currently enjoying a yield to maturity of %7.5. Which of the following statements would be correct about this semi-annual coupon bond?
a) The fair price is $1034.74 and it is selling at a premium
b) The fair price is $1132.94 and it is selling at a premium
c) The fair price is $966.45 and it is selling at a discount
d) The fair price is $1106.59 and it is trading at a premium
e) The fair price is $966.02 and it is selling at a discount
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