Question
Which of the following IBM Bonds is sold at discount? A. Coupon rate 10%; time to maturity 30 years; yield to maturity 8% B. Coupon
Which of the following IBM Bonds is sold at discount?
A. Coupon rate 10%; time to maturity 30 years; yield to maturity 8%
B. Coupon rate 7%; time to maturity 10 years; yield to maturity 5%
C. Coupon Rate 6%; time to maturity 20 years: yield to maturity 10%
D. Coupon rate 8%; time to maturity 30 years; yield to maturity 8%
E. Not enough information
Recently, Papyrus filed for bankruptcy. What most likely happened to the bonds of Papyrus in response to the filing?
A. Prices of the bonds increased; yield to maturity increased
B. Price of the bonds increased; yield to maturity decreased
C. Price of the bonds decreased; yield to maturity decreased
D. Price of the bond decreased; yield to maturity increased
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