You can be sure that a bond will sell at a premium to par when _________. its coupon rate is greater than its yield to maturity

Question

3 years ago

15

You can be sure that a bond will sell at a premium to par when _________. its coupon rate is greater than its yield to maturity

its coupon rate is less than its yield to maturity its coupon rate is equal to its yield to maturity its coupon rate is less than its conversion value

Business

1 answer:

QveST [7] · Answer 1 · 2022-04-30T02:03:43+03:00

QveST [7]3 years ago

5 0

Answer: coupon rate is greater than its yield to maturity

Explanation: This is because investors are interested in high yield and will not mind paying for it in other to get a higher payment from coupon.