Question
Eight years ago, your company issued a bond at a discount with a yield to maturity of 9% (the then market rate). Today, the yield
Eight years ago, your company issued a bond at a discount with a yield to maturity of 9% (the then market rate). Today, the yield to maturity (the current market rate) has decreased to 7.5%. The bond is currently trading: A. At par value (face value). B. At a discount. C. At a premium. D. Not enough information to say.
*I think that the answer is D, but I don't understand why.
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The Handbook Of Municipal Bonds
Authors: Frank J. Fabozzi, Sylvan G. Feldstein
1st Edition
0470108754, 9780470108758
