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A premium bond that pays $ 7 5 in interest annually matures in eight years. The bond was originally issued two years ago at par.
A premium bond that pays $ in interest annually matures in eight years. The bond was originally issued two years ago at
par. Which one of the following statements is accurate in respect to this bond today?
Multiple Choice
The face value of the bond today is greater than it was when the bond was issued.
The bond is worth less today than when it was issued.
The yield to maturity is less than the coupon rate.
The coupon rate is less than the current yield.
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
