Fixed Income Q43

43Analyst 1: A bond is priced at premium when the coupon rate is greater than the market discount rate. A bond is priced at discount when the coupon rate is less than the market discount rate.
Analyst 2: A bond is priced at premium when the coupon rate is less than the market discount rate. A bond is priced at discount when the coupon rate is more than the market discount rate.
Which analyst’s statement is most likely correct?

Option : A
Explanation : A bond is priced at premium when the coupon rate is greater than the market discount rate. A bond is priced at discount when the coupon rate is less than the market discount rate.

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