Nbspif a 6 annual coupon bond is currently traded at 1150


 Which of the following statements is most correct?

a) If a 6% annual coupon bond is currently traded at $1150, the YTM of the bond should be larger than 6%.

b) If a bond with a discount rate of 10% is currently traded at $1050, the coupon rate should be smaller than 10%.

c) If the YTM for a 9% annual bond is 7%, the bond should be traded at discount.

d) If the discount rate for a 12% annual coupon bond is 15%, the bond should be traded at discount.

e) If the intrinsic value a bond is $1145 and the bond is currently traded at $1250, an investor should buy this bond.

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Financial Management: Nbspif a 6 annual coupon bond is currently traded at 1150
Reference No:- TGS01403569

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