A bond has a face value of $1000. It has a 5% coupon, and the yield to maturity is 5%. If the bond matures in 9 years, we can say which of the following about the bond price? A The bond sells for par value The bond sells for a discount Not enough information to answer The bond sells for a premium
A bond has a face value of $1000. It has a 5% coupon, and the yield to maturity is 5%. If the bond matures in 9 years, we can say which of the following about the bond price? A The bond sells for par value The bond sells for a discount Not enough information to answer The bond sells for a premium
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A bond has a face value of $1000. It has a 5% coupon, and the yield to maturity is 5%. If the bond matures
in 9 years, we can say which of the following about the bond price?
A The bond sells for par value
B) The bond sells for a discount
C) Not enough information to answer
D The bond sells for a premium
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