All Else Constant, a Coupon Bond That Is Selling at a Premium

question 16

Multiple Choice

All else constant, a coupon bond that is selling at a premium, must have:

• A) a coupon rate that is equal to the yield to maturity.
• B) a market price that is less than par value.
• C) semi-annual interest payments.
• D) a yield to maturity that is less than the coupon rate.

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