Question: need help with 6 and 7 Question 6 (2 points) If the prevailing interest rate is 5%, which of the following bonds will trade at


Question 6 (2 points) If the prevailing interest rate is 5%, which of the following bonds will trade at a discount? Select all that apply. Bond Coupon rate A 4% B 5% 6% D 7% E 8% Bond A Bond B Bond C A B D E rate 4% 5% 6% 7% 8% Bond A 6 Bond B Bond C Bond D Bond E Question 7 (4 points) Suppose you pay $1,200 for a bond with the following characteristics: effective maturity of 8 years, annual coupon payments of $75, and par value of $1,000. If you expect to sell the bond after 1 year for a price of $1,250, what is your expected rate of return on this bond? 4.17% 6.25% 10.42% 4.47%
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