A bond for ibm maturing

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A bond for IBM maturing in 14 years and 3 months has quarterly coupon payments of $11.50. If the current interest rate on this bond is 5.25% (i.e. the yield to maturity), which of the following is true? 1)It is a discount bond selling for $935.07 2) It is a premium bond selling for 935.07 3) It is a discount bond selling for $868.12 4)It is a premium bond selling for $868.12 5) There is not enough information here.

Reference no: EM131975807

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