Question

If a bond is issued when prevailing interest rates are 8% at Rs.1,000 par value with a 8% annual coupon. Which of the following is NOT correct?

A The bond will sell at discount when the interest rate will increase to 10%
B The bond will sell at premium when the interest rate will increase to 10%
C The coupon of the bond is 8%
D Face value of the bond is Rs.1000
E All of the above are correct
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