If a coupon-paying bond is selling at a discount, the bond's yield to maturity will be _______ than the bond's coupon interest rate. less equal more
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If a coupon-paying bond is selling at a discount, the bond's yield to maturity will be _______ than the bond's coupon interest rate.
less
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- If the current interest rate exceeds the bond’s coupon rate, the bond will sell at a ___________.If the bondholder’s required rate of return equals the coupon interest rate, the bond will sell at _______________. A premium bond sells for ____________ as maturity approaches. The discount bond sells for ____________ as maturity approaches.If the bondholder's required rate of return equals the coupon interest rate, the bond will sell at ..................
- The yield to maturity on a bond a is fixed in the indenture. b is lower for higher-risk bonds. c is the required return on the bond. d is generally equal to the coupon interest rate.how will the modified duretion of a floating coupon bond be compared to the modified duration of a fixed rate coupon bond? (same, higher or lower?) (floating coupon adjust coupon accotding to interest rate level, ie higher interest rate results in higher coupon payment)All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity. A. a discount; less than B. a discount; higher than C. a premium; equal to D. a premium; less than
- The coupon rate is greater than the yield to maturity when a bond sells at a premium. Select one: True FalseA bond will be priced at a discount to par value if its coupon rate is less than its yield-to-maturity (YTM). Select one: True False. If the current interest rate exceeds the bond’s coupon rate, the bond will sell at a___________. The value of a bond to increase if there is a/an ________ in interest rates. A bond’s coupon rate is more than the interest rate, therefore the bond is selling at a_____________. As interest rate increases the value of a bond will ______________. If the bondholder’s required rate of return equals the coupon interest rate, the bond will sell at _________. A premium bond sells for ____________ as maturity approaches. The discount bond sells for ____________ as maturity approaches. A bondholder with a short-term bond is exposed to ___________ interest rate risk than when owing a long-term bond. When interest rates __________, the market required rates of return ________, and the bond prices will ________. If interest rates increase after a bond issue, the yield-to-maturity will ______,
- Which of the following bonds has the least reinvestment risk?A. A bond that has a higher coupon rate than the yield-to-maturityB. A bond that has a lower coupon rate than the yield-to-maturityC. A zero-coupon bondUnder what conditions will a discount bond have anegative nominal interest rate? Is it possible for a coupon bond or a perpetuity to have a negative nominalinterest rate?The yield to maturity on a bond is A. below the coupon rate when the bond sells at a discount and equal to the coupon rate when the bond sells at a premium. B. the discount rate that will set the present value of the payments equal to the bond price. C. None of the options are correct. D. based on the assumption that any payments received are reinvested at the coupon rate.