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A twenty-year bond has a 5% coupon. Yesterday, its yield-to-maturity was 5%. Interest rates rose today, which caused the bonds yield to rise as well.
A twenty-year bond has a 5% coupon. Yesterday, its yield-to-maturity was 5%. Interest rates rose today, which caused the bonds yield to rise as well. Which of the following is true of the bonds price?
Group of answer choices
a) Yesterday it was at a premium, today it is at a discount.
b) Yesterday it was at a discount, today it is at a premium.
c) Yesterday it was at par, today it is at a discount.
d) Yesterday it was at a discount, today it is at par.
e) Yesterday it was at par, today it is at a premium.
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