Homework Question Help (Finance)

Business & Finance
Tutor: None Selected Time limit: 1 Day

A bond with an annual coupon of $100 originally sold at par for $1000. The current yield on the maturity on this bond is 9%. Assuming no change in risk, this bond would sell at a ______ in order to compensate _________?

Jul 8th, 2015

Thank you for the opportunity to help you with your question! the solution is as such:

A bond with an annual coupon of $100 originally sold at par for $1000. The current yield on the maturity on this bond is 9%. Assuming no change in risk, this bond would sell at a  premium in order to compensate the seller for the above market coupon rate.

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Jul 8th, 2015

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