If a Bond Is Selling at Par Value, Then

question 4

Multiple Choice

If a bond is selling at par value, then:

• A)the yield to maturity is less than the coupon rate.
• B)the yield to maturity is greater than the coupon rate.
• C)the yield to maturity is equal to the coupon rate.
• D)its duration must be greater than its maturity.
• E)its duration must be equal to its maturity.

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Definitions:

Colorblind

The inability or decreased ability to see color, or perceive color differences, under normal lighting conditions.

Blind Spot

The area in the field of vision that lacks light-detecting photoreceptor cells due to the location where the optic nerve exits the eye, resulting in a lack of visual perception in this zone.

Optic Nerve

The optic nerve is a crucial part of the visual system, transmitting visual information from the retina to the brain.

Young-Helmholtz Theory

A theory of color vision that proposes three types of color receptors in the eye, responsible for the perception of red, green, and blue.