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8. A 15-year bond with a face value of $1,000 currently sells for $900. Which of the following CORRECT? a. The bonds coupon
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Answer #1

Option B

Since the bond is selling at a discount, it implies that its coupon rate is less that than the yield to maturity which is the required rate of return.

Option A and D are incorrect because current yield cannot be determined without knowing the coupon rate. Option c is incorrect because YTM is greater than the coupon rate. Option E is incorrect because the bonds maturity value would be its face value of $1000.

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