Do you think such bonds selling at a premium or at discount

Reference no: EM133665193

Problem: Currently, German government bonds (or German Bunds, which are widely viewed as the German equivalent of U.S. Treasury bonds) with a maturity of two years, which pay coupons once a year, have a negative interest rate of -0.6%. Without knowing any other information, and if coupons can never be negative, do you think such bonds will be selling at a premium, at par, or at a discount?

Reference no: EM133665193

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