Question
Consider an annual coupon bond with a $1,000 par value and several years until maturity. The current price is $1,014. Which of the following can
Consider an annual coupon bond with a $1,000 par value and several years until maturity. The current price is $1,014. Which of the following can be inferred about this bond?
| this bond is selling at par and the yield to maturity equals the coupon rate | ||
| this bond is selling at a discount and the yield to maturity is greater than the coupon rate | ||
| this bond is selling at a premium and the yield to maturity is greater than the coupon rate | ||
| this bond is selling at a discount and the yield to maturity is less than the coupon rate | ||
| this bond is selling at a premium and the yield to maturity is less than the coupon rate |
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond, Arne Strom
4th Edition
0273760688, 9780273760689
