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On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free. Issuer 16888 Corporation Par Value P10,000
On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free.
Issuer | 16888 Corporation |
Par Value | P10,000 |
Tenor | 5 years |
Coupon Rate | 5.2% p.a. |
Coupon Payment | every 3 months |
Issue Date | December 10, 2018 |
Maturity Date | December 10, 2023 |
If Eric sells the bond on December 10, 2020 at a market rate of 5.5% converted quarterly, would the purchase be at a discount, at par or at premium?
Group of answer choices:
A.) at a discount
B.) at par
C.) can not be determined
D.) at premium
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