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An 8 percent corporate bond that pays interest semi-annually was issued last year. Which two of the following most likely apply to this bond today
An 8 percent corporate bond that pays interest semi-annually was issued last year. Which two of the following most likely apply to this bond today if the current yield-to-maturity is 7 percent: I. a structure as an interest-only loan II. a current yield that equals the coupon rate III. a yield-to-maturity equal to the coupon rate IV. a market price that differs from the face value A. I and III only B. I and IV only C. II and III only D. II and IV only E. III and IV only I chose B. I and IV only, would you agree
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