A corporate bond shows a trading price of $124.65; a coupon rate of 6.245; a maturity date of February 15, 2034; and a par value of $1,000. What will you pay, and what will the yield be? Select an answer:
a. You will pay $1.246.50, and the yield will be 6.245 percent
b. You will pay $124.65, and the zero-coupon rate will be 4.09 percent.
c. You will pay $1,000, and the yield will be 4.09 percent.
d. You will pay $1,246.50, and the yield will be 4.09 percent
