Question

Which of the following statements about bonds is true?

A If the coupon rate equals the required return, the bond’s price equals its face value.
B For a discount bond, the coupon rate is greater than the required return.
C The yield to maturity (YTM) is always equal to the coupon rate at issuance.
D When interest rates rise, the prices of existing bonds increase.
E Callable bonds have lower yields compared to similar non-callable bonds.
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