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
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
