Question $2$

$\frac{2\mathrm{.}5}{2\mathrm{.}5}pts$

Which of the following are TRUE for a coupon bond?

The yield to maturity is greater than the coupon rate when the bond price is above the par value.

orrect!

When the coupon bond is priced at is face value, the yield to maturity equals the coupon rate.

The price of a coupon bond and the yield to maturity are positively related.

The yield is less than the coupon rate when the bond price is below the par value.analysis predicts the impact of this change

$q,$ interest rate on Treasury bonds, all else the sime.

higher; higher

lower: lower

lower; higher

higher, lower

$2*$