A 15-year bond with a face value of 1000 currently sells, Ask an Expert

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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? A The bond’s coupon rate exceeds the discount rate. B The bond’s coupon rate is identical to the discount rate. C The bond’s price is at a premium. D The bond’s price is at a par. E The bond’s coupon rate is less than the discount rate.

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