For a Bond Selling at Par, the Yield to Maturity

question 296

Multiple Choice

For a bond selling at par, the yield to maturity must be _____________.

• A) Greater than the coupon rate.
• B) Less than the coupon rate.
• C) Greater than the face value.
• D) Greater than the required rate of return.
• E) Equal to the coupon rate.

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Definitions:

Aqueous Solutions

Solutions in which water is the solvent, often involving substances dissolved in water to form a homogeneous mixture.

Solvent

A substance, usually a liquid, capable of dissolving other substances without chemical change in the solvent or solute, forming a solution.

Aqueous Phase

The part of a system that is composed of water, especially when water is the solvent in a solution.

Largest Amount

Refers to the greatest quantity or volume of a substance or object compared to others in a given set or context.