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Bonds Issued by Mabuza Communications That Have a Coupon Rate

Question 57

Multiple Choice

Bonds issued by Mabuza Communications that have a coupon rate of interest equal to 10.65 percent currently have a yield to maturity (YTM) equal to 15.25 percent.Based on this information, Mabuza's bonds must currently be selling at __________ in the financial markets.


A) par value
B) a discount
C) a premium
D) Not enough information is given to answer this question.
E) None of the above is a correct answer.

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