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.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconscious Thoughts

Mental processes not immediately available to consciousness, influencing behaviors and perceptions without one's awareness.

Psychoanalyst

A therapist who practices psychoanalysis, a method of mental therapy developed by Sigmund Freud, focusing on exploring unconscious conflicts.

Free Association

A psychoanalytic technique in which the patient says whatever comes to mind to uncover subconscious thoughts and feelings.