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edgartorres5123
17.03.2020 •
Business
Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) A. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. D. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium.
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Ответ:
A. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. FALSE
Explanation: If the yield to maturity (YTM) is less than the Coupon rate (CR) the bond is trading at a premium
B. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. FALSE
Explanation: If the yield to maturity (YTM) is greater than the Coupon rate (CR) the bond is trading at a discount.
C. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. TRUE
D. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. TRUE
Ответ:
10 2/11
Step-by-step explanation:
Well, you just add -52/11+20/11 to get -32/11
then you have to take the -32/11 to the otherside to make it 80/11+32/11
so, y=10 and 2/11