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Company Alpha issued bonds at a discount where each $1,000 face (par) bond was issued for $850. The coupon rate is stated as 5.5%. Company
Company Alpha issued bonds at a discount where each $1,000 face (par) bond was issued for $850. The coupon rate is stated as 5.5%. Company Beta issued its bonds at par (each $1,000 of bond was issued for $1,000) with a coupon rate of 6.25%. As an investor, which company's bonds have the favorable yield?
Select one:
a. Alpha
b. Beta
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