Zero-coupon bond to finance a new sausage factory

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Three years ago Johnsonville Inc. issued a coupon bond and a zero-coupon bond to finance a new sausage factory. Both bonds yielded 5 percent at issue, but now both have a 5.5 percent yield to maturity. Based on this information, we know that the coupon bond will sell at a _____ while the zero-coupon bond will sell at a  _____ .

premium to par; par

premium to par; discount to par (WRONG)

discount to par; premium to par

Not enough information

discount to par; discount to par

Reference no: EM131510765

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