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A Company Releases a Five-Year Bond with a Face Value

Question 93

Multiple Choice

A company releases a five-year bond with a face value of $1000 and coupons paid semiannually. If market interest rates imply a YTM of 8%, which of the following coupon rates will cause the bond to be issued at a premium?


A) 7%
B) 6%
C) 8%
D) 10%

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