Question
A bond sold five weeks ago for $950. The bond is worth $900 in today's market. The face value of the bond is $1,000. Assuming
A bond sold five weeks ago for $950. The bond is worth $900 in today's market. The face value of the bond is $1,000. Assuming no changes in risk, which of the following is mostly likely true?
A bond sold five weeks ago for $950. The bond is worth $900 in today's market. The face value of the bond is $1,000. Assuming no changes in risk, which of the following is mostly likely true?
| The coupon rate increased. | ||
| Interest rates are lower now than they were five weeks ago. | ||
| The bond is within one year of maturity. | ||
| The issuer threatened to call the bond at 110% of par value. | ||
| Interest rates are higher now than they were five weeks ago. |
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
5th edition
1111527369, 978-1111527365
