Questions
MCD2170 Foundations of Finance - Trimester 3 - 2025
Single choice
A company releases a five-year bond with a face value of $1000 and coupons paid semi-annually. If market interest rates imply a YTM of 6% p.a., which of the following annual coupon rates will cause the bond to be issued at a premium?
Options
A.a. 3%
B.b. 6%
C.c. 5%
D.d. 8%
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