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A bond with a face value of $1,000 matures in 9 years and has a 4% semiannual coupon. The bond currently is traded at $900.
A bond with a face value of $1,000 matures in 9 years and has a 4% semiannual coupon. The bond currently is traded at $900. Which of the following statements is CORRECT? Select one: O a. The nominal yield to maturity is 8.62% and you would sell each bond for $900 if you think that a "fair" market interest rate (discount rate) for such bonds is 10.67% O b. The nominal yield to maturity is 5.42% and you would sell each bond for $900 if you think that a "fair" market interest rate (discount rate) for such bonds is 4.67% OC. The nominal yield to maturity is 5.42% and you would sell each bond for $900 if you think that a "fair" market interest rate (discount rate) for such bonds is 9.59%. O d. The nominal yield to maturity is 4.80% and you would sell each bond for $900 if you think that a "fair" market interest rate (discount rate) for such bonds is 6.67%. O e. The nominal yield to maturity is 8.62% and you would sell each bond for $900 if you think that a "fair" market interest rate (discount rate) for such bonds is 5.59%
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