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The coupon interest rates for a bond are 3.2%. The required rate of return for that bond has now changed with market rates and is 4.2%. Which statement offers the BEST conclusion?

A. The bond's market value exceeds its par value.

B. The bond's market value is less than its par value.

C. The bond's market value is the same as its par value.

D. The bond is now considered a premium bond.

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Vaishali Yadav
Vaishali YadavLv10
16 Jan 2021

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A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? Please explain how also.

Select one:

a. The bond's coupon rate exceeds its current yield.

b. The bond's current yield exceeds its yield to maturity.

c. The bond's yield to maturity is greater than its coupon rate. 

d. The bond's current yield is equal to its coupon rate.

e. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850.

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A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT?

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