Question 178 bond pricing, premium par and discount bonds
Which one of the following bonds is trading at a discount?
(a) a ten-year bond with a $4000 face value whose yield to maturity is 6.0% and coupon rate is 6.5% paid semi-annually.
(b) a 6-year bond with a principal of $40,000 and a price of $45,000.
(c) a 15-year bond with a $10,000 face value whose yield to maturity is 8.0% and coupon rate is 10.0% paid semi-annually.
(d) a two-year bond with a $50,000 face value whose yield to maturity is 5.2% and coupon rate is 5.2% paid semi-annually.
(e) None of the above bonds are discount bonds.