Which of the following is most likely to be correct about a 4% coupon bond with a yield to maturity of 4.5%?
Interest rates must have decreased since the bond was first issued.
It must be trading at a discount to its face value.
Its coupon rate must have decreased since the bond was first issued.
It must be trading at par.
It must be trading at a premium to its face value
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
(Save $1 )
One time Pay
(Save $5 )
Billed Monthly
*First month only
You can see the logs in the Dashboard.
