Question
Which of the following statements is most correct? Select one: a. If the discount rate for a 12% annual coupon bond is 15%, the bond
Which of the following statements is most correct?
Select one:
a. If the discount rate for a 12% annual coupon bond is 15%, the bond should be traded at discount.
b. If the YTM for a 9% annual bond is 7%, the bond should be traded at discount.
c. If the intrinsic value a bond is $1145 and the bond is currently traded at $1250, an investor should buy this bond.
d. If a 6% annual coupon bond is currently traded at $1150, the YTM of the bond should be larger than 6%.
e. If a bond with a discount rate of 10% is currently traded at $1050, the coupon rate should be smaller than 10%.
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