Which of the following is TRUE for a coupon bond? Select one: a. The yield to maturity is greater than the coupon rate when the bond price is above the par value. b. The price of a coupon bond and the yield to maturity are positively related. c. When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate d. The yield is less than the coupon rate when the bond price is below the par value
Which of the following is TRUE for a coupon bond? Select one: a. The yield to maturity is greater than the coupon rate when the bond price is above the par value. b. The price of a coupon bond and the yield to maturity are positively related. c. When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate d. The yield is less than the coupon rate when the bond price is below the par value
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST3: The Stock Market: Its Function, Performance, And Potential As An Investment Opportunity
Section: Chapter Questions
Problem 4CQ
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Which of the following is TRUE for a coupon bond?
Select one:
a. The yield to maturity is greater than the coupon rate when the bond price is above the par value.
b. The price of a coupon bond and the yield to maturity are positively related.
c. When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate
d. The yield is less than the coupon rate when the bond price is below the par value
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