When the price of a bond equals the face value the:
A. current yield is equal to the coupon rate.
B. yield to maturity is greater than the current yield.
C. yield to maturity will be above the coupon rate.
D. yield to maturity will be below the coupon rate.
Answer: A
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Refer to the table above. The farmer increased his total production of corn by 9 bushels per acre after applying
A) the first bag of fertilizer. B) the second bag of fertilizer. C) the third bag of fertilizer. D) the fourth bag of fertilizer.
The individual pictured in Figure 5.2
A) must be risk-averse. B) must be risk-neutral. C) must be risk-loving. D) could be risk-averse, risk-neutral, or risk-loving. E) could be risk-averse or risk-loving, but not risk-neutral.
When economists say goods are scarce, they mean:
a. consumers are too poor to afford the goods and services available. b. consumers are unwilling to buy goods unless they have very low prices. c. goods are generally freely available from nature in most countries. d. the desire for goods and services exceeds our ability to produce them with the limited resources available.
Which of the following statements about a consumer's budget line is correct?I.The budget line shows all the combinations of two goods that exhaust the consumer's budget.II.The slope of the budget line shows the market tradeoff between two goods.III.The budget line represents the consumer's preferences or tastes.
A. I only B. I and II only C. I and III only D. II and III only