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

Question

Quizplus · Accepted Answer

When the yield-to-maturity (YTM) of a bond is higher than its coupon rate, the bond will sell at a discount. This is because the bond's fixed interest payments are less attractive compared to the higher returns that could be earned elsewhere at the current YTM, thus reducing the bond's price below its par value to compensate investors for the lower coupon rate.

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