Trading with market required yield to maturity

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?(Bond valuation) Doisneau 1818?-year bonds have an annual coupon interest of 1111 ?percent, make interest payments on a semiannual? basis, and have a ?$1 comma 0001,000 par value. If the bonds are trading with a? market's required yield to maturity of 1313 ?percent, are these premium or discount? bonds? Explain your answer. What is the price of the? bonds? a. If the bonds are trading with a yield to maturity of 1313?%, then ? (Select the best choice? below.) A. the bonds should be selling at par because the? bond's coupon rate is equal to the yield to maturity of similar bonds. B. the bonds should be selling at a discountdiscount because the? bond's coupon rate is lessless than the yield to maturity of similar bonds. Your answer is correct.C. the bonds should be selling at a premiumpremium because the? bond's coupon rate is greatergreater than the yield to maturity of similar bonds. D. there is not enough information to judge the value of the bonds. b. The price of the bonds is ?$. ?(Round to the nearest? cent.)

Reference no: EM131622757

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Trading with market required yield to maturity : If the bonds are trading with a? market's required yield to maturity of 1313 ?percent, are these premium or discount? bonds?
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