If in determining the yield to maturity on a bond at a given interest rate,you get a value below the current market price,in the next calculation you should use:
A) a higher interest rate.
B) a lower interest rate.
C) a longer maturity.
D) a higher coupon payment.

Question

Quizplus · Accepted Answer

If the yield to maturity calculation produces a value below the current market price of the bond, it means that the bond is currently priced higher than its expected return. To adjust for this, a lower interest rate should be used in the next calculation to bring the bond's expected return closer to its current market price.

If in Determining the Yield to Maturity on a Bond