Business, 10.03.2020 16:57 jholland18
Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par.
Coupon interest rate
Yield to maturity
11%
6%
What is the price of the bond in relation to its parvalue? (Select the best answer below.)
A. The bond sells at par.
B. The bond sells at a premium to par.
C. The bond sells at a discount to par.
Answers: 1
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Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can b...
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