Need Mcq answer asap.......... - 22255

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Helping_guy

Helping_guy

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Request Description

Assume that the par value of a bond is $1,000.  Consider a bond where the coupon rate is 9% and the current yield is 10%.  Which of the following statements is true?

a) the current yield was less than 9% when the bond was first issued

b) the current yield was greater than 9% when the bond was first issued

c) the market value of the bond is more than $1,000

d)  the market value of the bond is less than $1,000

 

Solution Description

Assume that the par value of a bond is $1,000.  Consider a bond where the coupon rate is 9% and the current yield is 10%