A 6 percent, annual coupon bond is currently selling at a premium and matures in
ID: 2673998 • Letter: A
Question
A 6 percent, annual coupon bond is currently selling at a premium and matures in 7 years. The bond was originally issued 3 years ago at par. Which one of the following statements is accurate in respect to this bond today?Answer
The face value of the bond today is greater than it was when the bond was issued.
The bond is worth less today than when it was issued.
The yield-to-maturity equals the current yield.
The coupon rate is less than the current yield.
The yield-to-maturity is less than the coupon rate.
Explanation / Answer
The face value of the bond today is greater than it was when the bond was issued. as it says at a premium thus ANSWER please rate appreciated
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