Question
Consider an annual coupon bond with a $1000 par value and 5 years to maturity. The yield to maturity is 8% and the coupon rate
Consider an annual coupon bond with a $1000 par value and 5 years to maturity. The yield to maturity is 8% and the coupon rate is 10%. If the yield to maturity is held constant, which of the following can be inferred about this bond?
| this bond is selling at a premium and the price will increase with time | ||
| this bond is selling at a discount and the price will increase with time | ||
| this bond is selling at a discount and the price will decrease with time | ||
| this bond is selling at par and the price will remain constant | ||
| this bond is selling at a premium and the price will decrease with time |
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1st Edition
1409401294,1409459977
