If a Bond's Price Is Lower Than the Principal Amount

question 26

Multiple Choice

If a bond's price is lower than the principal amount, its yield to maturity will be ________ the coupon rate.

• A) less than
• B) more than
• C) equal to
• D) unrelated to

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Definitions:

Welfare Reforms

Changes or amendments to a country’s welfare policy aimed at improving the effectiveness and efficiency of its social security and aid programs.

Welfare Benefits

Financial assistance or services provided by the government to support individuals or families, especially those in financial need.

Time Limit

A fixed or set period within which something must be started, completed, or achieved.

Income Inequality

The imbalanced sharing of income among participants in an economy, affecting individuals and households differently.