Question: The following statements are true. Explain why. a. If a bonds coupon rate is higher than its yield to maturity, then the bond will sell

The following statements are true. Explain why.

a. If a bond’s coupon rate is higher than its yield to maturity, then the bond will sell for more than face value.

b. If a bond’s coupon rate is lower than its yield to maturity, then the bond’s price will increase over its remaining maturity.


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