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Question 21 Not yet MNC Corporation has two bonds outstanding. Both bonds mature in 10 years, have a face value of OMR 1,000, and have
Question 21 Not yet MNC Corporation has two bonds outstanding. Both bonds mature in 10 years, have a face value of OMR 1,000, and have a yield to maturity of 8%. One bond is a zero-coupon bond and the other bond has a coupon rate of 8%. Which of the following staements is true? answered Marked out of 200 Flag question Select one: a. The zero-coupon bond must have a higher price because of its greater capital gain potential b. Both bonds must sell for the same price it markets are in equilibrium, c. The zero-coupon bond must sell for a lower price than the bond with an 8% coupon rate. dNone of the answers are correct c. All rational investors will prefer the 8% bond because it pays more interest. Clear my choice
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