All else constant, a bond will sell at _____ when the yield to maturity is _____ the coupon rate.
A) a premium; higher than
B) a premium; equal to
C) at par; higher than
D) a discount; higher than

Question

Quizplus · Accepted Answer

When the yield to maturity (YTM) is higher than the coupon rate, the bond will sell at a discount because the market requires a higher return than what the bond's coupon payments offer.

All Else Constant, a Bond Will Sell at _____ When