Category Archives: Solution

  • All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity. 
    A. a premium; less than
    B. a premium; equal to
    C. a discount; less than
    D. a discount; higher than
    E. par; less than
Answer =  C. a discount; less than
all else constant a bond will sell at when the coupon rate is the yield to maturity
all else constant a bond will sell at when the coupon rate is the yield to maturity