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Please give me the accurate answer to the following questions along with an explanation. 1. No one should buy a premium bond because the price
Please give me the accurate answer to the following questions along with an explanation.
1. No one should buy a premium bond because the price of the bond is expected to decline over time. True, false, or uncertain. Explain.
2. A bond with 10 years to Maturity, a coupon rate of 8% paid semiannually, and a face value of 1000 is currently selling for $1,025. What is the Yield to Maturity on this Bond? (pls show all workings)
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