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Six years ago, HBCC Inc. sold a 20-year, $1,000 par value, semi-annual pay bond with a coupon rate of 8.00% for $1,000.00. Today the bonds
Six years ago, HBCC Inc. sold a 20-year, $1,000 par value, semi-annual pay bond with a coupon rate of 8.00% for $1,000.00. Today the bonds YTM has fallen to 7.50%. Therefore, the bonds are currently selling ___________. Why?
a. at a discount
b. at a premium
c. at par
d. above market price
e. not enough information to answer
*****Please show calculator inputs (N,I/Y, PV,PMT,FV)******
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