Q
Which of the following relationships holds TRUE if a bond sells at a discount?
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A
A. Bond price < par value and ytm > coupon rate
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B
B. Bond price > par value and ytm > coupon rate
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C
C. Bond price > par value and ytm < coupon rate
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D
D. Bond price < par value and ytm < coupon rate
Correct Answer:
A. A. Bond price < par value and ytm > coupon rate