If the coupon rate on a bond is 8 percent and current market interest ratesare 6 percent, should this bond be selling at a premium or a discount?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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If the coupon rate on a bond is 8 percent and current market interest rates
are 6 percent, should this bond be selling at a premium or a discount?

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