Question: Jane purchased a 15-year bond at par value when it was initially issued five years ago. The bond has an annual coupon rate of 5.75%

  1. Jane purchased a 15-year bond at par value when it was initially issued five years ago. The bond has an annual coupon rate of 5.75% and a par value of $1000. The current market interest rate (yield to maturity) is 4.15%. At the current market interest rate, this bond will sell at _______. Assuming no change in market interest rates, the bond will present Jane with capital ________ as it matures.

    .

    A.

    premium; gains
    B.

    discount; gains
    C.

    premium; losses
    D.

    discount; losses

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