I need questions like this answered.
Susan owns a bond that pays $50 in interest annually. The bond matures in twelve years. It was issued three years ago at the par value of $1,000. The bond is selling today at $1,050.
Pick the correct statement related to this bond today from below.
Multiple ChoiceThe yield to maturity is less than the coupon rate.
The bond is worth less today than when it was issued.
The yield to maturity equals the current yield.
The coupon rate is higher than the current yield.
The face value of the bond today is greater than it was when the bond was issued.