The Yield to Maturity for a Bond Selling at Par

question 10

Multiple Choice

The yield to maturity for a bond selling at par is

• A) unchanged once the bond sells at par.
• B) below the coupon rate.
• C) above the coupon rate.
• D) a value that remains fixed, unlike the coupon rate which changes daily.
• E) equal to the coupon rate.

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Definitions:

95%

Refers to a confidence interval percentage commonly used in statistics to represent the range within which the true population parameter is expected to fall, with 95% certainty.

Coin

A flat, typically round piece of metal with an official stamp, used as money.

68%

In the context of a normal distribution, it refers to the percentage of data that falls within one standard deviation of the mean.

Germination Rate

The percentage of seeds that successfully sprout and begin to grow over a given period.