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A bond has a par value of $1,000, has 30 years to maturity, and makes annual coupon payments of $50. Which of the following statements
A bond has a par value of $1,000, has 30 years to maturity, and makes annual coupon payments of $50. Which of the following statements is NOT true?
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At a market interest rate of 5%, the bond sells for par.
If the bonds market interest rate is 6%, the bond sells at a discount.
If the bonds market interest rate is 5%, and if this bond paid semiannual coupons, the price would be higher holding everything else constant.
If the bond sells at par, the coupon rate and the yield-to-maturity are equal to each other.
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