So Long as a Bond Sells for an Amount Above

question 51

True/False

So long as a bond sells for an amount above its par value, the coupon interest rate and yield to maturity remain equal.

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Definitions:

Earnings Over Time

The progression and growth of a company's earnings or an individual's income across different periods.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

ROA

Return on Assets, a financial ratio that shows the percentage of profit a company earns in relation to its overall resources.

ROE

Return On Equity; a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.