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 on
A bond that was issued at its face value a year ago has a price that is now above its face value. Based only on
this information which of the following is true?
The bond's yield to maturity is negative.
The bond's yield to maturity is equal to the bonds coupon rate.
The bond's yield to maturity is less than the bond's coupon yield.
The bond's yield to maturity is greater than the bond's coupon rate.
The bond's yield to maturity is equal to zero.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
