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Three years ago Johnsonville Inc. issued a coupon bond and a zero-coupon bond to finance a new sausage factory. Both bonds yielded 5 percent at
Three years ago Johnsonville Inc. issued a coupon bond and a zero-coupon bond to finance a new sausage factory. Both bonds yielded 5 percent at issue, but now both have a 5.5 percent yield to maturity. Based on this information, we know that the coupon bond will sell at a _____ while the zero-coupon bond will sell at a _____ . |
premium to par; par |
premium to par; discount to par (WRONG) |
discount to par; premium to par |
Not enough information |
discount to par; discount to par |
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