If a $100,000, 8%, 10 year semi-annual bond is sold to yield 9%. Assuming no transaction costs the cash proceeds will be:
a. less then the face value
b. equal to face value
c. greater then the face value
d. more than $180,000
Answer: A
If a $100,000, 8%, 10 year semi-annual bond is sold to yield 9%. Assuming no transaction costs the cash proceeds will be:
a. less then the face value
b. equal to face value
c. greater then the face value
d. more than $180,000
Answer: A