When the Price of a Bond Is Above Face Value

question 68

Multiple Choice

When the price of a bond is above face value the yield to maturity:

• A) is below the coupon rate.
• B) will be above the coupon rate.
• C) will equal the current yield.
• D) will equal the coupon rate.

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Definitions:

Observer Reliability

The degree to which different observers consistently assess or record behaviors, outcomes, or events in the same way.

Test-Retest Reliability

A measure of the consistency of a psychological test or assessment when the same instrument is administered to the same group of people on two different occasions.

Test-Retest Reliability

The consistency of a measure assessed by administering the same test to the same group of individuals at two different points in time.

Face Validity

A measure of how suitable, relevant, or meaningful a test or procedure appears on the surface, even if not necessarily proven through empirical means.