A bond with several years to maturity has a coupon rate


1. A bond with several years to maturity has a coupon rate that is greater than its yield to maturity. The bond will:

a. Be priced at a premium. b. Be priced at a discount c. Be priced at par. d. May be priced either at a discount or premium

2. What is the price of a bond with a par value of $1,000, an 8% coupon rate paid annually, and a yield to maturity of 6% if the bond matures in 8 years?

a. $1,124.20 b. $1,136.03 c. $1,147.20 d. $1,157.74 e. $1,167.68

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Financial Management: A bond with several years to maturity has a coupon rate
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