Evaluating Bonds\ The

40

par value bond with maturity in two years and

5

semi-annual coupon is trading for

50

. If the Yield to maturity is

7%

, the bond is:\ A) Over-valued\ B) Fairly-valued\ C) Under-valued\ D) Over-valued or undervalued applies only to stocks priced through CAPM.\ E) Insufficient Information

Evaluating Bonds The 40 par value bond with maturity in two years and 5 semi-annual coupon is trading for 50. If the Yield to maturity is 7%, the bond is: A) Over-valued B) Fairly-valued C) Under-valued D) Over-valued or undervalued applies only to stocks priced through CAPM. E) Insufficient Information