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Posted on Sep 28, 2024

A bond with a 3 year maturity and a coupon rate of 4 % and a face value of $1000 is priced at $ 925

A bond with a 3 year maturity and a coupon rate of 4% and a face value of $1000 is priced at $925. Let the yield to maturity be denoted by y. Which of the following statements is true?

		y > 4.00%
		y times the face value equals the coupon rate
		y < 4.00%
		y = 4.00%

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