If a bond is purchased at a price above the face value,the yield to maturity will be:

Question

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When a bond is purchased at a price above its face value (a premium), the yield to maturity will be less than the stated interest rate. This is because the investor pays more upfront but still receives the same fixed interest payments and face value at maturity, leading to a lower overall return compared to the higher initial investment.

If a Bond Is Purchased at a Price Above the Face