Have you ever struggled to answer the question “which of the following are true for a coupon bond?” in relation to the concept of in relation to the concept of Management? There’s no need to worry about it anymore. This post contains the correct answer to your question.
Which of the following are true for a coupon bond?
Options:
- A. When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate.
- B. The price of a coupon bond and the yield to maturity are positively related.
- C. The yield to maturity is greater than the coupon rate when the bond price is above the par value.
- D. The yield is less than the coupon rate when the bond price is below the par value.
The Correct Answer Is:
- A. When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate.
Conclusion
The answer to your question “which of the following are true for a coupon bond?” should now be clear for you. I appreciate you coming here to find the answer to your question and best wishes for your preparation related to “Management Subjects”.
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