Question
Tranis Corporation sold an issue of 20-year, $1,000 par value bonds to the public that carry a 10.00% coupon rate, payable semiannually. It is now
Tranis Corporation sold an issue of 20-year, $1,000 par value bonds to the public that carry a 10.00% coupon rate, payable semiannually. It is now 10 years later, and the current market rate of interest is 8.00%. If interest rates remain at 8.00% until Tranis' bonds mature, what will happen to the value of the bonds over time? Question content area bottom Part 1 (Select the best choice below.) A. The bonds will sell at a discount and rise in value until maturity. B. The bonds will sell at a premium and decline in value until maturity. C. The bonds will sell at a discount and fall in value until maturity. D. The bonds will sell
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