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- Bond RFP was issued at par 3 years ago and will mature 5 years from now. The bond has a coupon of 7% (paid

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- Bond RFP was issued at par 3 years ago and will mature 5 years from now. The bond has a coupon of 7% (paid semiannually) and is currently selling at $1060 Bond RFP may be called 5 years after issuance for price of $1,100. Based on this information, which of the following statements is correct? a. Interest rates have risen since bond RFP was issued b. For purchasers of the bond today, the YTC will exceed YTC as of the date of issuance c. For purchasers of the bod today, the YTC will be less than the YTM d. For initial purchasers of the bond, the YTM was greater than the YTC

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