All else constant, a bond will sell at _ when the coupon rate is _ the...

Question

Question

All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity.

a premium; less than

a premium; equal to

a discount; less than

a discount; higher than

par; less than

Answer 1

Answer #1

Suppose, a bond has Face value $1,000 Selling price- $850 (sell at Discount) Coupon rate= 10% Duration= 10 years Calculate th

Answer 2

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