If the yield- to- maturity of a bond is less than the coupon rate, the bond will sell at:

Name: If the yield- to- maturity of a bond is less than the coupon rate, the bond will sell at:
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

When the yield-to-maturity of a bond is less than the coupon rate, it means that the bond is offering a higher interest rate compared to the current market rate for similar bonds. As a result, investors are willing to pay more for this bond, leading it to sell at a premium above its par value.

If the Yield- To- Maturity of a Bond Is Less