Multiple Choice
A bond is issued at $1,000 par value during a time in which interest rates for similar bonds were 8%.Today new bonds issued with a similar credit worthiness is 10%.Which of the following is most likely to be true about the bond.
A) It is currently selling for a premium
B) It is currently selling at a discount
C) currently selling at par
D) The bond is likely to be called
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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