Question: On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free. Issuer 16888 Corporation Par Value P10,000

On issue date, Eric bought a bond offered with the following details. For simplicity, assume that coupons are tax-free.

Issuer

16888 Corporation

Par Value

P10,000

Tenor

5 years

Coupon Rate

5.2% p.a.

Coupon Payment

every 3 months

Issue Date

December 10, 2018

Maturity Date

December 10, 2023

If Eric sells the bond on December 10, 2020 at a market rate of 5.5% converted quarterly, would the purchase be at a discount, at par or at premium?

Group of answer choices:

A.) at a discount

B.) at par

C.) can not be determined

D.) at premium

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