The price of a corporate bond which has a par value of $1000 and coupon payment is 8% and yield is 5%. The maturity of the bond is 10 years will be? O a. Lower than the par value O b. Equal the par value O c. Higher than the par value

The price of a corporate bond which has a par value of $1000 and coupon payment is 8% and yield is 5%. The maturity of the bond is 10 years will be? O a. Lower than the par value O b. Equal the par value O c. Higher than the par value

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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The price of a corporate bond which has a par value of $1000 and coupon payment is 8% and yield is 5%. The maturity of the bond is 10 years will
be?
O a. Lower than the par value
b. Equal the par value
O c. Higher than the par value

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