A bond has a coupon rate of 6 percent and matures in 10 years.The next semiannual interest payment will be paid 1 month from now.Which one of the following do you know with certainty concerning this bond?
A) The bond sells at a discount.
B) The bond sells at a premium.
C) The dirty price is higher than the clean price.
D) The clean price is higher than the dirty price.
E) The market price exceeds the par value.
Correct Answer:
Verified
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