If the yield to maturity (the market rate of return) of a bond is less than its coupon rate, the bond should be
A) selling at a discount; i.e., the bond's market price should be less than its face (maturity) value.
B) selling at a premium; i.e., the bond's market price should be greater than its face value.
C) selling at par; i.e., the bond's market price should be the same as its face value.
D) purchased because it is a good deal.
Correct Answer:
Verified
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