a) All things being equal If a bond's coupon rate is higher than its yield to maturity (YTM), is the bond selling at a discount, premium or par? b) All things being equal If a bond's coupon rate is lower than its yield to maturity (YTM), is the bond selling at a discount, premium or par? c) All things being equal If a bond's coupon rate is equal to its yield to maturity (YTM), then is the bond selling at a discount, premium or par? d) All else being equal, the longer the term to maturity, the greater or the lower the duration? f) All else being equal, the higher the coupon rate on the bond, the shorter or the longer the duration of the bond?
a) All things being equal If a bond's coupon rate is higher than its yield to maturity (YTM), is the bond selling at a discount, premium or par? b) All things being equal If a bond's coupon rate is lower than its yield to maturity (YTM), is the bond selling at a discount, premium or par? c) All things being equal If a bond's coupon rate is equal to its yield to maturity (YTM), then is the bond selling at a discount, premium or par? d) All else being equal, the longer the term to maturity, the greater or the lower the duration? f) All else being equal, the higher the coupon rate on the bond, the shorter or the longer the duration of the bond?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
a) All things being equal If a bond's coupon rate is higher than its yield
to maturity (YTM), is the bond selling at a discount, premium or par?
b) All things being equal If a bond's coupon rate is lower than its yield to
maturity (YTM), is the bond selling at a discount, premium or par?
c) All things being equal If a bond's coupon rate is equal to its yield to
maturity (YTM), then is the bond selling at a discount, premium or par?
d) All else being equal, the longer the term to maturity, the greater or
the lower the duration?
f) All else being equal, the higher the coupon rate on the bond, the
shorter or the longer the duration of the bond?
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