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You are given Bond A, Bond B and Bond C as below. Note that Bond A and B pay annual coupons while Bond C pays
You are given Bond A, Bond B and Bond C as below. Note that Bond A and B pay annual coupons while Bond C pays semiannually.
(1) Identify if each bond is sold at a premium, discount, or par. (6 points)
Bond A | Bond B | Bond C | |
Annual coupon bond | Annual coupon bond | Semi-annual coupon bond | |
Settlement Date | 10/7/20 | 10/7/20 | 10/7/20 |
Maturity Date | 10/7/25 | 10/7/30 | 10/7/30 |
Face Value | $100 | $100 | $100 |
Coupon Rate | 4% | 4% | 4% |
Maturity | 5 | 10 | 10 |
Coupon Payments per year, Frequency | 1 | 1 | 2 |
Price | $103.42 | $98.52 | $100.00 |
Sold at Premium, Par, or Discount? |
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