Question: 6 Marks Question 2 (12 Marks) A. Under what circumstances will a bond's coupon rate exceed its coupon yield? Explain in economic terms why this

6 Marks Question 2 (12 Marks) A. Under what circumstances will a bond's coupon rate exceed its coupon yield? Explain in economic terms why this occurs. B. A $100 par value bond has a coupon rate of 8 % and a coupon yield of 9 %. What is the bond's market price? C. Griswold Travel has issued 6-year bonds that pay $30 in interest twice each year. The face value of these bonds is $1,000 and they offer a yield to maturity of 5.5 %. How much are the bonds worth? 3 Marks 3 Marks 6 Marks

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