If the market yield is less than what the issuer is offering(i.e., coupon rate), then the issuer will charge more for the bond, hence, it will issue at premium.
So, 2nd option is correct.
the s company has a bond outstanding with a face value of $1000 that reaches maturity...
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be made semiannually Assuming the appropriate YTM on the Sisyphean bond is 7.1%, then this bond will trade at O A. a discount. О В. раг. O C. a premium. O D. none of the above
The Sisyphean Company has a bond outstanding with a face value of $ 1000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 9% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.3%, then the price that this bond trades for will be closest to:
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 12%, then the price that this bond trades for will be closest to:
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 9 years. The bond certificate indicates that the stated coupon rate for this bond is 8.8% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.3%, then the price that this bond trades for will be closest to:
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $ 963, then the YTM for this bond is closest to:
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 9 years. The bond certificate indicates that the stated coupon rate for this bond is 84% and that the coupon payments are to be made semiannually Assuming the appropriate YTM on the Sisyphean bond is 9.8%, then the price that this bond trades for will be closest to O A. $3,670 O B. $4,588 OC. $5,505 OD. $6,423
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.9% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.4%, then the price that this bond trades for will be closest to: O A. $943 OB. $1,131 O c. $754 OD. $1,320
The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 10 years. The bond certificate indicates old that the stated coupon rate for this bond is 9% and that the coupon payments are to be made semiannually Assuming the appropriate YTM on the Sisyphean bond is 9.7%, then the price that this bond trades for will be closest to O A. $1,338 OB. $765 O C. $956 OD. $1,147
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coup rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 10.4%, then the price that this bond trades for will be closest to: O A. $5,843 OB. $4,173 OC. $3,339 D. $5,008
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $4,461, then the YTM for this bond is closest to: a. 13.9% b. 11.9% c. 7.9% d. 9.9%