Which of the Following Is True for a Coupon Bond

question 47

Multiple Choice

Which of the following is true for a coupon bond?

• A) When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate.
• B) The price of a coupon bond and the yield to maturity are positively related.
• C) The yield to maturity is greater than the coupon rate when the bond price is above the par value.
• D) The yield is less than the coupon rate when the bond price is below the par value.

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