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Which of the following statements is most correct? a. If a bond's coupon rate exceeds its yield to maturity (YTM), the bond's price must be
Which of the following statements is most correct?
a. | If a bond's coupon rate exceeds its yield to maturity (YTM), the bond's price must be less than its par value (discount bond). |
b. | If a bond's coupon rate exceeds its yield to maturity (YTM), the bond's price must be more than its face value (premium bond). |
c. | If the price of the bond is same as par value, the yield to maturity must be the same as coupon rate (par bond). |
d. | Answers b and c are both correct. |
e. | None of the above answers are correct. |
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