Question
Today, Tim bonds were priced at a premium all ay and Zume bonds were priced at a discount all day. Both bonds have face values
Today, Tim bonds were priced at a premium all ay and Zume bonds were priced at a discount all day. Both bonds have face values of $1000 and pay their next annual coupon in one year. Maeve had $10000 at the satrt of the day and Guzman had $10000 at the start of the day. Which statement is true?
1. Maeve had enough money to buty 10 Web Hang bonds today and Guzman had enough money to buy 10 Zume bonds today
2. Maeve had enough money to buy 10 Web Hang bonds today and Guzman did not have enough money to buy Zume bonds today
3. Maeve did not have enough money to buy 10 Web Hang bonds today and Guzman had enough moeny to buy 10 Zume bonds today
4. Maeve did not have enough money to buy 10 Web Hang bonds today and Guzman did not have enough moeny to buy 1p Zume bonds today.
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