A bond that has a yield to maturity of 14% and a current yield of 8%...
A bond that has a yield to maturity of 14% and a current yield
of 8%
A. Sells at a premium.
B. Sells at par.
C. Has a coupon rate in excess of the market rate of
interest.
D. Has a coupon rate less than the market rate of interest.
Homework Answers
D. Has a coupon rate less than the market rate of interest.
the above is answer..
because to get higher rate of 14%, the coupon rate will be lesser than YTM
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A bond that has a yield to maturity of 14% and a current yield
of 8%...
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