QUESTION You have been offered a corporate bond trading at 112.75. If the face value of the

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You have been offered a corporate bond trading at 112.75. If the face value of the bond is $1000, what can you assume has happened since the bond was first issued?A) Interest rates rose, and the price of the bond decreased creating a discount.

B) Interest rates rose, and the price of the bond increased creating a premium.

C) Interest rates declined, and the price of the bond increased creating apremium.

D) Interest rates declined, and the price of the bond declined creating a discount.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: Dec 20, 2022 01:59 AM

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QUESTION You have been offered a corporate bond trading at 112.75. If the face value of the

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ANSWER D Interest rates declined and the price of the ... View the full answer

Fundamentals of Corporate Finance

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