The Yield to Maturity Is ________ Than the ________ Rate

question 104

Multiple Choice

The yield to maturity is ________ than the ________ rate when the bond price is ________ its face value.

• A)greater;coupon;above
• B)greater;coupon;below
• C)greater;perpetuity;above
• D)less;perpetuity;below

---

Definitions:

Common Stock

A type of security that represents ownership in a corporation, entitling the shareholder to a share of the company's profits and assets.

Capital Stock

The total amount of a company's stock (both preferred and common) authorized for issuance, representing ownership in the company.

Preferred Stock

A class of stock that typically offers dividends and claim on assets before common stockholders but usually does not have voting rights.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.