Why is the bond is selling at a discount


Question:

Consider a 30-year bond issued two years ago with a 9 percent coupon rate and $1,000 par value. The bond makes semi-annual payments and currently sells for $906.51. What is the bond's yield to maturity? (YTM) Why is the bond is selling at a discount?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Why is the bond is selling at a discount
Reference No:- TGS02056780

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)