The Following Information Relates to Questions 16-29

Multiple Choice

The following information relates to Questions 16-29

-A four-year corporate bond with a 7% coupon has a Z-spread of 200 bps. Assume a flat yield curve with an interest rate for all maturities of 5% and annual compounding. TheBond will most likely sell:

A) close to par.
B) at a premium to par.
C) at a discount to par.