Consider a bond with a coupon rate of 8% and a yield to maturity of 5%, will this bond sell for higher than or less than par value? If the bond's yield to maturity remains constant, then in 3 years, will the bond price be higher, lower, or unchanged? O a. Bond will sell for less than the par value, its price in 3 years will be lower. O b. Bond will sell for less than the par value, its price in 3 years will be higher. O. Bond will sell for less than the par value, its price in 3 years will be unchanged. O d. Bond will sell for more than the par value, its price in 3 years will be unchanged. O e. Bond will sell for more than the par value, its price in 3 years will be lower. O f. Bond will sell for more than the par value, its price in 3 years will be higher.

Consider a bond with a coupon rate of 8% and a yield to maturity of 5%, will this bond sell for higher than or less than par value? If the bond's yield to maturity remains constant, then in 3 years, will the bond price be higher, lower, or unchanged? O a. Bond will sell for less than the par value, its price in 3 years will be lower. O b. Bond will sell for less than the par value, its price in 3 years will be higher. O. Bond will sell for less than the par value, its price in 3 years will be unchanged. O d. Bond will sell for more than the par value, its price in 3 years will be unchanged. O e. Bond will sell for more than the par value, its price in 3 years will be lower. O f. Bond will sell for more than the par value, its price in 3 years will be higher.

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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