All else constant,a bond will sell at ________ when the yield to maturity is ________ the coupon rate.

Question

Quizplus · Accepted Answer

When the yield to maturity is higher than the coupon rate, the bond will sell at a discount because investors will only buy the bond if they can receive a yield that compensates them for the lower coupon rate. Therefore, the price of the bond will need to be lower to provide the appropriate yield, resulting in a discount.

All Else Constant,a Bond Will Sell at ________ When the Yield