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Felton Corp. 8% bonds were issued at par value 7 years ago. These bonds mature in 13 years and currently are priced to yield 6%.
Felton Corp. 8% bonds were issued at par value 7 years ago. These bonds mature in 13 years and currently are priced to yield 6%. Which of the following must be true regarding these bonds?
The coupon rate has increase since these bonds were first issued. | ||
The yield to maturity has risen since these bonds were issued. | ||
The current yield of these bonds is greater today than when they were issued. | ||
None of the above |
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