The yield to maturity on a bond with a price equal to its par value will
A. be less than the coupon rate.
B. be more than the coupon rate.
C. always be equal to the coupon rate.
D. be more or less than the coupon rate depending on the required return.
Answer:C
The yield to maturity on a bond with a price equal to its par value will
A. be less than the coupon rate. B. be more than the coupon rate. C. always be equal to the coupon rate. D. be more or less than the coupon rate depending on the required return.