A corporate bond has a coupon rate of 9 a face value of, Ask an Expert

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A corporate bond has a coupon rate of 9%, a face value of $1,000, and matures in 15 years. Which of the following statements is MOST correct?

A) An investor with a required return of 10% will value the bond at less than $1,000.

B) If the bond's market price is $800, then the annual interest payments on the bond will be $81. C) An investor who buys the bond for $800 and holds the bond until maturity will have a capital loss.

D) An investor who buys the bond for $800 will have a yield to maturity on the bond less than 9%.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92067227

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