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

Name: All else constant,a bond will sell at _____ when the yield to maturity is _____ the coupon rate.
Brand: Quizplus
Rating: 5.0 (55 reviews)

Question

Quizplus · Accepted Answer

When the yield to maturity is higher than the coupon rate, it indicates that the bond's interest income is lower compared to the current market interest rate. As a result, investors are less likely to buy the bond, and the bond's price will decrease, selling at a discount to its face value.

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