A 12-year bond has an annual coupon rate of 9%. The par value of the bond is
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Question:
A 12-year bond has an annual coupon rate of 9%. The par value of the bond is $1,000 and the bond has a yield to maturity of 7%. Which of the following statements is correct?
If the market interest rate declines, the price of the bond will also decline. |
The bond is currently selling at a price below its par value. |
The bond is currently selling at a price above its par value. |
The bond is currently selling at its par value. |
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ISBN: 978-0133798074
4th edition
Authors: Jeffrey K. Pinto
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