All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity. Group of answer choices A discount; higher than A premium; less than A premium; equal to A discount; less than

Respuesta :

Answer:

a discount; higher than

Explanation:

A coupon rate is the interest rate that is paid on face value of bond by the those that issue bond. If the prevailing interest is higher than the coupon rate then investors will go for securities with higher rate of interest. It should be noted that All else constant, a bond will sell at a discount when the coupon rate is higher than the yield to maturity.