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AnordinarybondofBBTCorporationhasanannualcouponrateof7%and a face value of $1,000. The bond has 8 years to maturity. Coupons are paid semi-annually and the current yield to maturity is 4%.

  1. AnordinarybondofBBTCorporationhasanannualcouponrateof7%and a face value of $1,000. The bond has 8 years to maturity. Coupons are paid semi-annually and the current yield to maturity is 4%. Your broker calls and offers to sell you one of these bonds for $1205. Should you accept this offer? Explain why or why not.

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