If the Yield to Maturity on a Bond Is Greater

question 20

Multiple Choice

If the yield to maturity on a bond is greater than the coupon rate, you can assume

• A) interest rates have decreased.
• B) the sales price is below par.
• C) the sales price is above par.
• D) risk premiums have decreased.

---

Definitions:

Real World-Counterparts

Actual entities or phenomena that serve as the practical or genuine equivalents to concepts, theories, or objects discussed in theoretical or experimental contexts.

Implicit Encoding

The process of storing information without conscious awareness, often used in the context of learning and memory.

Implicit Encoding

The unconscious processing of information into memory, without intentional effort or awareness.

Transformational Equivalence

The recognition that an object remains the same even if it undergoes a transformation that changes its appearance.