Question
Which of the following is correct regarding a bond's YTM? Group of answer choices The YTM will equal the coupon rate if the par value
Which of the following is correct regarding a bond's YTM?
Group of answer choices
The YTM will equal the coupon rate if the par value of the bond equals $1,000.
The rate that equates the future cash flows to the price of the bond, assuming the coupon payments are reinvested at the coupon rate.
The YTM is higher than the coupon rate when the bond is trading below $1,000.
The YTM is always higher than or equal to the coupon rate.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
