Question: The relation between a bonds coupon rate and yield rate is known to influence a bonds issuance price. Presented below are coupon rates and yield
The relation between a bonds coupon rate and yield rate is known to influence a bonds issuance price. Presented below are coupon rates and yield rates for a selection of corporate bonds.
| Bond | Coupon Rate | Yield Rate | |
|---|---|---|---|
| A | 8.80% | 8.65% | |
| B | 9.80 | 10.00 | |
| C | 6.00 | 6.00 | |
| D | 4.70 | 5.00 | |
| E | 10.40 | 10.20 |
dentify whether each bond was sold at a discount, at its par value, or at a premium.
| Bond | Bond sold at a: |
|---|---|
| A | AnswerDiscountPremiumPar value |
| B | AnswerDiscountPremiumPar value |
| C | AnswerDiscountPremiumPar value |
| D | AnswerDiscountPremiumPar value |
| E | AnswerDiscountPremiumPar value |
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