A client owns a $1,000 10-year bond. The coupon rate is 6 percent. The client acquired the bond three years ago at a discount. What is knwon about the interest rates three years ago? A. The stated rate was less than 6 percent. B. The stated rate was more than 6 percent. C . The market rate was less than 6 percent. D. The market rate was more than 6 percent.
A client owns a $1,000 10-year bond. The coupon rate is 6 percent. The client acquired the bond three years ago at a discount. What is knwon about the interest rates three years ago? A. The stated rate was less than 6 percent. B. The stated rate was more than 6 percent. C . The market rate was less than 6 percent. D. The market rate was more than 6 percent.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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