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When a bond's yield to maturity is less than the bond's coupon rate, the bond: A. had to be recently issued. B. is selling at
When a bond's yield to maturity is less than the bond's coupon rate, the bond:
A. had to be recently issued.
B. is selling at a premium.
C. has reached its maturity date.
D. is priced at par.
E. is selling at a discount.
another question
The market value of an 18-year zero-coupon bond with a maturity value of $1,000 discounted at a 12% annual interest rate with semi-annual compounding is closest to:
A. $192.86.
B. $130.04.
C. $122.74
also, please show the work explaining it
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