If a bond is selling at a premium (i.e., at a price more than its face...
If a bond is selling at a premium (i.e., at a price more than its face value), which of the following is true?
| Interest rates must have gone up since the bond was issued. |
| The coupon rate is higher than the yield to maturity. |
| The bond must be a zero-coupon bond. |
| The coupon rate is lower than the yield to maturity. |
| The bond must have been issued by the U.S. Treasury. |
Homework Answers
Is a bond is selling at a premium, then it means coupon rate is higher than the yield to maturity. Because present value of coupon payment is more than coupon rate.
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If a bond is selling at a premium (i.e., at a price more than
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