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The relation between a bonds coupon rate and yield rate is known to influence a bonds issuance price. Presented below are coupon rates and yield
The relation between a bonds coupon rate and yield rate is known to influence a bonds issuance price. Presented below are coupon rates and yield rates for a selection of corporate bonds.
Bond | Coupon Rate | Yield Rate | |
---|---|---|---|
A | 8.80% | 8.65% | |
B | 9.80 | 10.00 | |
C | 6.00 | 6.00 | |
D | 4.70 | 5.00 | |
E | 10.40 | 10.20 |
dentify whether each bond was sold at a discount, at its par value, or at a premium.
Bond | Bond sold at a: |
---|---|
A | AnswerDiscountPremiumPar value |
B | AnswerDiscountPremiumPar value |
C | AnswerDiscountPremiumPar value |
D | AnswerDiscountPremiumPar value |
E | AnswerDiscountPremiumPar value |
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