Question
If the coupon rate on a bond is 6% and the bond is trading at a PREMIUM TO PAR, than the yield (YTM) should be:
If the coupon rate on a bond is 6% and the bond is trading at a PREMIUM TO PAR, than the yield (YTM) should be: {Hint: Think about the coupon, yield and price relationship} A. less than 6%. B. equal to 6%. C. greater than 6%. D. cannot be determined.
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
6th Edition
0073226386, 978-0073226385
