Question
Which of the following statements are (is) true about bonds? In all examples we are assuming that the bond has a par value of $1,000
Which of the following statements are (is) true about bonds?
In all examples we are assuming that the bond has a par value of $1,000 and a coupon rate of 5%. The bond will mature in 13 years.
Question options:
| Suppose the the bond is selling for $980. This makes the bond a premium bond |
| If the yield of this bond is 10%, then it must be a premium bond |
| A bond that sells at a deep discount tends to appreciate over time, provided that interest rates remain constant |
| Suppose the the bond is selling for $1,098. This makes the bond a premium bond |
| If the yield of this bond is 5%, then it must be a par bond |
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