A bond that has a "yield to maturity" greater than its coupon interest rate will sell for a price
A) below par.
B) at par.
C) above par.
D) that is equal to the face value of the bond plus the value of all interest payments.

Question

Quizplus · Accepted Answer

When a bond's yield to maturity is greater than its coupon interest rate, it means investors can earn a higher return by buying the bond at a discount, which is below par. Therefore, choice A is the correct answer.

A Bond That Has a "Yield to Maturity" Greater Than