The Yield to Maturity on a Bond with a Price

question 200

Multiple Choice

The yield to maturity on a bond with a price equal to its par value will

• A) always be equal to the coupon rate.
• B) be less than the coupon rate.
• C) be more or less than the coupon rate depending on the required return.
• D) be more than the coupon rate.

---

Definitions:

Outward Manifestations

Refers to the actions or expressions by parties in a contract that show their intention to enter into the agreement.

Contract Law

The branch of law dealing with the formation, performance, and enforcement of agreements between parties.

Consideration

Something of value exchanged between parties in a contract, making the agreement legal and binding.

Bargained-For Exchange

An element of contracts where both parties agree to provide something of value to the other.