When a bond is purchased at a discount from its face value,yield to maturity will be ____ the coupon rate printed on the certificate.

Name: When a bond is purchased at a discount from its face value,yield to maturity will be ____ the coupon rate printed on the certificate.
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

When a bond is purchased at a discount from its face value, the yield to maturity will be more than the coupon rate because the investor is effectively getting a higher return due to purchasing the bond for less than its face value.

When a Bond Is Purchased at a Discount from Its