If a Bond Is Currently Trading at Its Face (Par)value,then

question 55

Multiple Choice

If a bond is currently trading at its face (par) value,then it must be the case that:

• A)the bond's yield to maturity is less than its coupon rate.
• B)the bond's yield to maturity is equal to its coupon rate.
• C)the bond's yield to maturity is greater than its coupon rate.
• D)the bond is a zero-coupon bond.

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Definitions:

Antitrust Laws

Antitrust laws are regulations that promote competition by restricting unlawful monopolies, cartels, and mergers, to ensure fair business practices for the benefit of consumers.

U.S. Steel Case

A landmark legal case involving the United States Steel Corporation that dealt with antitrust issues and the regulation of large corporations.

Laissez-Faire Perspective

An economic philosophy advocating minimal government intervention in the economy, allowing individuals and businesses to operate freely.