If a 10-year bond with a face value of $1,000 and a coupon rate of 8% p.a. is trading at discount, which of the following statement about yield to maturity (YTM) is true" a. The yield to maturity is less than 8% p.a. b. The yield to maturity is more than 8% p.a. c. The yield to maturity is 8% p.a. d. The yield to maturity cannot be determined with the information above.
If a 10-year bond with a face value of $1,000 and a coupon rate of 8% p.a. is trading at discount, which of the following statement about yield to maturity (YTM) is true" a. The yield to maturity is less than 8% p.a. b. The yield to maturity is more than 8% p.a. c. The yield to maturity is 8% p.a. d. The yield to maturity cannot be determined with the information above.
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 17PROB
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