![lionscoachjose](/avatars/3693.jpg)
lionscoachjose
12.11.2020 •
Business
If the yield to maturity (the market rate of return) of a bond is less than its coupon rate, the bond should be:.a. selling at a discount; i.e., the bond's market price should be less than its face (maturity) value.
b. selling at a premium; i.e., the bond's market price should be greater than its face value.
c. selling at par; i.e., the bond's market price should be the same as its face value.
d. purchased because it is a good deal.
Solved
Show answers
More tips
- S Sport How to Choose Tennis Rackets?...
- H Health and Medicine AKDS Vaccination: Ensure Your Child s Safety...
- H Health and Medicine Naskol ko Opasen Ukus Kleshcha i Kak Ego Raspoznat...
- C Computers and Internet How to Delete Your Account on Odnoklassniki...
- H Health and Medicine What to Do When Your Jaw Locks Up?...
- G Goods and services What Are the Most Popular Services?...
- P Philosophy How did the concept of module arise in computer science?...
- F Food and Cooking How to Cook Julienne? Recipes and Tips...
Answers on questions: Business
- B Business Individuals expectations of lower future prices is a Question 9 options: rightward shifter of the AD curve. leftward shifter of the AD curve. reason for moving up along a given AD...
- B Business An investment adviser representative has worked with a client and his spouse for 10 years and has an excellent relationship with the couple. The representative has been notified that...
- E English 1When some people talk about money 2They speak as if it were a mysterious lover 3Who went out to buy milk and never 4Came back, and it makes me nostalgic 5For the years I lived on...
- C Chemistry 3. An environmentalist tests the acidity of water samples at five different distances from a factory. a. IV - b. DV -...
- E English Write several sentences explaining how Claudette Colvin hurts her case by struggling with her arresting officers. Support your answer with textual evidence....
- M Mathematics A scientist is comparing the size of two one insect is 1.33 cm long and the other insect is 2.01 cm long which is the difference in size between the two and insect...
- G Geography What is the approximate latitude and longitude of x?...
- C Chemistry A mothball, composed of naphthalene (C19H3), has a mass of 6.42 g. How many naphthalene molecules does it contain?...
- S Social Studies please help ill give brainliest 5 stars thank you and more and the bill is Families First Coronavirus Response Act please help...
- M Mathematics Which fraction is equivalent to the repeating decimal 0.18? O 2 9 2. O 11 17 90 18 100 i will mark u brainleist !!...
Ответ:
b. selling at a premium; i.e., the bond's market price should be greater than its face value.
Explanation:
In the case when the market rate of return or yield to maturity is lower than the coupon rate this represents that the bond sells at a premium i.e. the market price of the bond is more than the face value
Let us suppose the market price of the bond is $1,050
And, the face value is $1,000
So the bond is sold at a premium
hence, the correct option is b.
Ответ:
the role of a business is to produce and distribute goods and services to satisfy a public need or demand. Society does not exist without some form of an economy, and businesses are what make up the economic system of the world