Answered
A bond with an annual coupon payment of $100 originally sold at par for $1,000. Market interest rates are currently 12%. This bond would be selling at a ____ in order to compensate ____.
A) premium; the purchaser for the below market coupon rate
B) discount; the purchaser for the below market coupon rate
C) premium; the seller for the below market coupon rate
D) discount; the seller for the below market coupon rate
On Sep 22, 2024