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:

Codominance

A genetic scenario where two different alleles for a specific trait are both expressed fully in an individual's phenotype, leading to a blend or coexistence of both traits.

Preponderance

The condition of being greater in number, quantity, or importance; often used in legal contexts to describe the standard of proof in civil cases.

Ascendance

The act of rising to a position of dominance or control in various contexts such as social, corporate, or military fields.

Down's Syndrome

A genetic disorder caused by the presence of an extra 21st chromosome, leading to developmental and physical differences.