4 Folder w Items In which situation(s) might a bond be called? Select one: O a. When the interest rates are sufficiently higher than the coupon rate. O b. When the interest rates are equal to the coupon rate. Chegg O c. When the interest rates are sufficiently lower than the coupon rate. O d. All of the above. O e. None of the above. 5 Yield Rate j2 = 10% Determine whether bond #4 below is trading at a premium, at par, or at a discount? Bond No. Face Value Redemption Coupon Rate Years to Redemption 1. $1000 At Par j2 = 8% 10 2. $5000 At Par j2 = 12% 25 3. $2000 At Par j2 = 6.5% 5 4. $1000 At 105 12 = 5% 10 j2 = 9% j2 = 6.5% j2 = 5% Select one: O a. This bond is trading at par. O b. This bond is trading at a discount. O c. This bond is trading at a premium