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If Its Yield to Maturity Is Less Than Its Coupon

question 76

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:

Sovereign Wealth Fund

State-owned investment funds or entities that manage national savings for the purposes of investment and maintaining the country's wealth.

Private Equity Fund

A type of investment fund that pools money from investors to acquire stakes in private companies with the aim of realizing a profit through future sales or public offerings.

Market Securities

Financial instruments, such as stocks and bonds, that are traded in financial markets.

Private Placements

Sale of securities to a small number of investors.

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