Question: PLEASE PROVIDE THE CORRECT ANSWER 18) If a coupon bond's price is equal to the face value then it follows that A. The bond's coupon

PLEASE PROVIDE THE CORRECT ANSWER

18)

If a coupon bond's price is equal to the face value then it follows that

A.

The bond's coupon rate < the bond's YTM

B.

The bond's coupon rate > the bond's YTM

C.

The bond's coupon rate = the bond's YTM

If the price of a bond is greater than the bond's face value, which of the following must be true?

A.

The bond is a coupon paying bond

B.

The bond could be either a coupon paying bond or a zero-coupon bond

C.

The bond is a zero-coupon bond

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!