Question: A bond that was issued at its face value a year ago has a price that is now above its face value. Based only upon

A bond that was issued at its face value a year ago has a price that is now above its face value. Based only upon this information which of the following is true?

Question 1 options:

The bonds yield to maturity is greater than the bonds coupon rate

The bonds yield to maturity is less than the bonds coupon yield

The bonds yield to maturity is equal to the bonds coupon rate

The bonds yield to maturity is negative

A bond that was issued at par a year ago is now selling below its par value of $1,000. Based only upon this information which of the following is true?

Question 5 options:

The bonds yield to maturity is less than the bonds coupon rate

The bonds yield to maturity is greater than the bonds coupon rate

The bonds yield to maturity is equal to the bonds coupon rate.

The bonds yield to maturity is negative

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