If a Bond Is Selling at a Premium Above the Par

question 45

True/False

If a bond is selling at a premium above the par value that means that the yield to maturity is greater than the coupon rate.

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Definitions:

Sulfur Dioxide

A toxic gas with a sharp, irritating smell, commonly produced by volcanic activity and industrial processes.

Acid Rain

Rainfall made acidic by atmospheric pollution that causes environmental harm, typically to forests and lakes.

Shale Gas

Natural gas that is found trapped within shale formations.

Anticlines

Upwardly convex folds in sedimentary layers of rock, which can form oil and gas reservoirs.