When a Bond's Yield to Maturity Is Less Than the Bond's

question 9

Multiple Choice

When a bond's yield to maturity is less than the bond's coupon rate,the bond:

• A)is selling at a discount
• B)is priced at par
• C)had to be recently issued
• D)is selling at a premium
• E)has reached its maturity date

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Definitions:

Thoracic Region

The part of the body located between the neck and the abdomen, encasing the heart and lungs within the rib cage.

Vertebra

One of the individual bones that make up the vertebral column (spine) in vertebrates.

Coccyx

The small, triangular bone at the base of the spinal column in humans, commonly referred to as the tailbone.

Tail Bone

The common term for the coccyx, the small bone at the base of the vertebral column in humans, consisting of several fused vertebrae.