A company releases a five-year bond with a face value of $1000 and coupons paid semiannually. If market interest rates imply a YTM of 10 %, which of the following coupon rates will cause the bond to be issued at a premium?
A) 8%
B) 12%
C) 7%
D) 10%
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Home » Business » A company releases a five-year bond with a face value of $1000 and coupons paid semiannually. If market interest rates imply a YTM of 10 %, which of the following coupon rates will cause the bond to be issued at a premium? A) 8% B) 12% C) 7% D) 10%