An investor purchases a 5% coupon bond maturing in
An investor purchases a 5% coupon bond maturing in 15 years for par value. Immediately after purchase, the yield required by the market increases. The investor would then most likely have to sell the bond at:
A.par.
B.a discount.
C.a premium.
参考解答
4j8***102
2024-11-14 23:45:43
Ans:B;
B is correct because the bond would sell below par or at a discount if the yield required by the market rises above the coupon rate. Because the bond initially was purchased at par, the coupon rate equals the yield required by the market. Subsequently, if yields rise above the coupon, the bond’s market price would fall below par.
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