A 12-year bond, with a fixed coupon rate of 4% and a face value of $1,000 is currently trading at $920. Which is correct? The yield-to-maturity is lower than the coupon rate The bond is selling at par value The yield-to-maturity is higher than the coupon rate The yield-to-maturity is equal to the coupon rate
A 12-year bond, with a fixed coupon rate of 4% and a face value of $1,000 is currently trading at $920. Which is correct? The yield-to-maturity is lower than the coupon rate The bond is selling at par value The yield-to-maturity is higher than the coupon rate The yield-to-maturity is equal to the coupon rate
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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A 12-year bond, with a fixed coupon rate of 4% and a face value of $1,000 is currently trading at $920. Which is correct?
The yield-to-maturity is lower than the coupon rate |
||
The bond is selling at par value |
||
The yield-to-maturity is higher than the coupon rate |
||
The yield-to-maturity is equal to the coupon rate |
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