Kaitlyn Purchases a $1,000 Corporate Bond with a Fixed Interest

Multiple Choice

Kaitlyn purchases a $1,000 corporate bond with a fixed interest rate of 5 percent for $900. What is the most likely explanation for this apparent bargain?

A) Overall interest rates in the economy increase.
B) Someone just wanted to get rid of the bond quickly.
C) The bond receives a better rating by Standard & Poor's or Moody's.
D) Overall interest rates in the economy decrease.
E) The company just introduced a new product.