Multiple Choice
Which of the following statements is true?
A) A bond sells at a discount if its price exceeds its face value.
B) A bond sells at a premium if the yield is above the coupon rate.
C) A bond sells at par if investors expect to earn a capital gain.
D) A bond sells at a discount if the yield is above its coupon rate.
E) A bond never sells at par value.
Correct Answer:
Verified
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