contestada

When a bond's yield to maturity is less than the bond's coupon rate, the bond: ____________

a. had to be recently issued.
b. is selling at a premium.
c. has reached its maturity date.
d. is priced at par. is selling at a discount.

Respuesta :

Chimara

Answer:

The answer is (B) The bond is selling at a premium

Explanation:

What does it mean when a bond's YTM is less than its CR?

It means that the value of the bond in the market is higher than its value at par.

YTM and CR are two important factors influencing the purchase of bonds by investors.

YTM is the interest rate accruing to the sale of a bond which is held by the investor until its maturity date. It is measured in points or percentage.

CR is the amount of interest accruing to the owner/buyer of a bond. It is measured per annum.

Otras preguntas