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A Sunpac bond is selling at a discount to its face value. The bond has 3 years to maturity and pays an annual coupon. Based
A Sunpac bond is selling at a discount to its face value. The bond has 3 years to maturity and pays an annual coupon. Based on this information, which of the following statements is correct? a. Bonds always sell at a discount, hence why they are called discount securities. b. The bonds yield is greater than its coupon percentage. c. The bonds yield is less than its coupon percentage. d. Both a. and c. e. None of the above
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