SOLVED : articlewritingcafe.net – A bond has a par value of $1,000 and 12 years to maturity, and makes coupon payments of $60 every 12 months. Which of the following is/are true:/2022
SOLVED : articlewritingcafe.net –
A bond has a par value of $1,000 and 12 years to maturity, and makes coupon payments of $60 every 12 months. Which of the following is/are true:
I At a market rate of interest of 6%, the bond sells at par
II At a market rate of interest of 7% the bond sells at a premium
III If the bond sells at par, the coupon rate, YTM and Current Yield are all equal
IV If the bond sells at a discount then capital gains yield is positive
Group of answer choices
I, III, and IV
I, II and III
I, II, III, and IV
II, III and IV