If a bond is purchased at a price above the face value,the yield to maturity is:

Name: If a bond is purchased at a price above the face value,the yield to maturity is:
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If a bond is purchased at a price above the face value, the yield to maturity will be less than the stated interest rate. This is because the investor paid more than the face value and so the interest payments will be spread over a greater amount, lowering the effective interest rate.

If a Bond Is Purchased at a Price Above the Face