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If Its Yield to Maturity Is Less Than Its Coupon

question 23

Multiple Choice

If its yield to maturity is less than its coupon rate,a bond will sell at a _____,and increases in market interest rates will _____.


Definitions:

Supply Shocks

Unexpected events that affect aggregate supply, sometimes only temporarily.

Inward

Refers to movements or directions towards the inside or center of something.

Expansionary Gap

A situation where the actual output of an economy exceeds its potential output at full employment, often leading to inflation.

Inflationary Pressure

The upward pressure on prices that may arise from factors such as increased demand or rising costs, leading to inflation.

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