If the yield of maturity of the bond is lower than the coupon rate, the price of this bond will be?

Select one:

a. Higher than the par value.

b. Lower than the par value.

c. Equal the par value.

The situation in which the current market price is greater than intrinsic value is called:

Select one:

a. All answers are incorrect.

b. Equilibrium.

c. Stock undervalued.

d. Stock overvalued.

An investor is considering purchasing a 10-year zero-coupon bond of $1,000 par value. If the current interest rate for equally risky bonds is 13%. The bond will be sold at?

Select one:

a. Discount.

b. Fair value.

c. Premium.

The price of a corporate bond which has a par value of $1000 and coupon payment is 8% and yield is 5%. The maturity of the bond is 10 years will be?

Select one:

a. Higher than the par value

b. Lower than the par value

c. Equal the par value