Solved: Why is the bond is selling at a discount, Finance Basics

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Why is the bond is selling at a discount

Question:

Consider a 30-year bond issued two years ago with a 9 percent coupon rate and $1,000 par value. The bond makes semi-annual payments and currently sells for $906.51. What is the bond's yield to maturity? (YTM) Why is the bond is selling at a discount?

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Finance Basics: Why is the bond is selling at a discount

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