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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
  • Would you expect this bond to be trading at a premium or a discount? Why?

  • 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?image text in transcribed

  • 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)?

Price/Yield Chart Price Chart Yield Chart 10/28/2016 10/27/2021 Zoom: 5D 1M 3M YTD 1Y 3Y 5Y 10Y Max Price Price $ Date : 10/22/2021 Price: $138.47 140.00 M 120.00 brown 100.00 2017 2018 2019 2020 2021

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