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Use the Information for the Question(s) Below

Question 16

Multiple Choice

Use the information for the question(s) below. Use the information for the question(s)  below.   -The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.1% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.6%, then this bond will trade at ________. A)  a premium B)  a discount C)  par D)  none of the above
-The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.1% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.6%, then this bond will trade at ________.


A) a premium
B) a discount
C) par
D) none of the above

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