Question: Simon Co. has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated

Simon Co. has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the bond is 9%, then this bond will trade at:

a discount.

par.

None of the given.

a premium.

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