Fish Corp. purchases a $100,000 face value bond which matures in one year. The coupon rate is 6% and the market rate is 6%. What is the premium or discount?
A)$0
B)$5,660
C)$6,000
D)$94,340

Question

Quizplus · Accepted Answer

When the coupon rate is equal to the market rate, the bond is sold at its face value. Therefore, there is no premium or discount in this case.

Fish Corp Purchases a $100,000 Face Value Bond Which Matures in in One