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

Question

Question

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

Multiple Choice

a premium; equal to

par; higher than

par; less than

a discount; higher than

a premium; higher than

Answer 1

Answer #1

a discount; higher than

when the yield to maturity is higher than the coupon rate,a bond will sell at a discount.

Thanks

Let me know if you have any doubt

Answer 2

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