will sell atuhen the viekd to mat ue ns the Coupon rate a a

will sell atuhen the viekd to mat ue ns the Coupon rate a) a prtmin nigker Han b) par?h.ghu, than c) par less Ahan d) a dvcesunl, wiyhes then e) a premam/ tqual to

Solution

When yield to maturity is more than the coupon rate then bond is a discount bond.

When yield to maturity is less than coupon rate then the bond is premium bond.

When yield to maturity is equal to coupon rate then the bond is par Vale bond that is bond price is equal to par value.

So correct answer is d) a discount, higher than