Homework Answers
Option B
Since the bond is selling at a discount, it implies that its coupon rate is less that than the yield to maturity which is the required rate of return.
Option A and D are incorrect because current yield cannot be determined without knowing the coupon rate. Option c is incorrect because YTM is greater than the coupon rate. Option E is incorrect because the bonds maturity value would be its face value of $1000.
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