Question
A bond with an annual coupon of $120 originally sold at par for $1000. The current market interest rate of this bond is 8%. This
A bond with an annual coupon of $120 originally sold at par for $1000. The current market interest rate of this bond is 8%. This bond will sell at a _____ today and present the seller with a capital______.
A) Premium; gain
B) discount; gain
C) premium; loss
D) discount: loss
E) discount; neither loss or gain
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Innovation And Finance
Authors: Andreas Pyka, Hans-Peter Burghof
1st Edition
0415696852, 978-0415696852
