Q23 ND Electric Company issued $1,000 bonds that have an annual coupon rate of 6.5%. The present market value of the bonds is $1,225. If the bonds have 17 years remaining until maturity, what is the current yield on ND Electric Company bonds? A) 4.6% 6.5% 7.2% 13.2% B) C) D) If the required rate of return (current interest rate) exceeds the bond's coupon rate, the bond will sell below par value or at a discount. A) True B) False Q24 Q25 A zero coupon bond is selling for $476. The bond has a par value of $1,000 and matures in 8 years. Your friend asks you if he should buy the bond. He tells you his required return is 9 percent. Would you recommend he buy the bond or not? A) Buy the bond B) Do not buy the bond