When the price of a bond is below the face value, the yield to maturity:
A. will equal the current yield.
B. will equal the coupon rate.
C. is below the coupon rate.
D. will be above the coupon rate.
Answer: D
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The precautionary demand for money:
a. varies inversely with the income level. b. varies inversely with the price level. c. is used as an insurance agent against unexpected needs. d. states that nominal income must exceed real income. e. is a classical concept in monetary theory.
A narrowly diversified firm has wide economies of scope
Indicate whether the statement is true or false
The real interest rate is 4 percent and the nominal interest rate is 6 percent. Is there inflation or deflation? What is the inflation or deflation rate?
a. deflation; 2 percent b. deflation; 10 percent c. inflation; 2 percent d. inflation; 10 percent
Which of the following is not a final good or service?
A. The salsa you use while watching football on the weekend. B. A notebook for your college courses C. A gallon of milk for your breakfast cereal D. The cheese on the pizza you bought from Domino's