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Bond - Microsoft Corp Coupon rate =5.2% Matury Date 6/1/2039 Last Trade Price:$141.11 Last Trade Yeild 2.336% Price at offering: $99.79 Would you expect this
Bond - Microsoft Corp Coupon rate =5.2% Matury Date 6/1/2039 Last Trade Price:$141.11 Last Trade Yeild 2.336% Price at offering: $99.79 |
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Would you expect this bond to be trading at a premium or a discount? Why?
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Look at the Price/Yield chart on the hyperlinked page. What is the current bond price?
The par/offer price was $100. Is this bond trading at a premium or a discount? How can
you tell?
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What is the difference between the coupon rate and the yield on this bond (i.e., what do
they mean for the investor who purchased/held the bond)?
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