All else constant, a bond will sell at _ when the coupon rate is _ the yield to maturity. Multiple Choice a premium; less than a premium; equal to a discount; less than a discount; higher than par; less than

Yield To Maturity (YTM) is the expected return from holding a bond until maturity. It is when the bondholder does not end up selling the bond before the bond's maturity date. YTM is calculated as an annual rate, and it accounts for what all future bond coupon payments at their present value are worth today.

Ceteris paribus, bonds are sold at discount only when the coupon rate is higher than the YTM.

All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity. Multiple Choice a premium; less than a premium; equal to a discount; less than a discount; higher than par; less than

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All else constant, a bond will sell at _ when the coupon rate is _ the yield to maturity. Multiple Choice a premium; less than a premium; equal to a discount; less than a discount; higher than par; less than