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Consider the following information from the close of trading on November 24, 2020 for a coupon bond with a face value of
Posted: Sun Jul 03, 2022 1:01 pm
by answerhappygod
- Consider The Following Information From The Close Of Trading On November 24 2020 For A Coupon Bond With A Face Value Of 1 (21.08 KiB) Viewed 10 times
Consider the following information from the close of trading on November 24, 2020 for a coupon bond with a face value of $1,000 and a maturity date of November 29, 2022: Coupon rate: 4.75% Price: $1,075 Yield to maturity: 0.99% The bond's current yield was 4.41 %. (Round your response to two decimal places.) Why is the bond's yield to maturity less than its coupon rate? O A. The bond's price is higher than its face value, which lowers the bond's yield to maturity. O B. The bond's price is higher than its face value, which actually increases the bond's yield to maturity. O C. The bond's price is higher than its face value, which lowers the bond's current yield. O D. None of the above are correct.