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A bond will sell at a discount when Group of answer choices The coupon rate is greater than yield to maturity None of the choices are correct The coupon rate is less than the current yield, and the current yield is less than yield to maturity The coupon rate is greater than the current yield, and the current yield is greater than yield to maturity The coupon rate is less than the current yield, and the current yield is greater than the yield to maturity

User Gustafc
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1 Answer

3 votes

Answer:

The coupon rate is less than the current yield and the current yield is less than the yield to maturity.

Step-by-step explanation:

In case when the bond is sold at the discount, so the coupon rate is lower than the present yield also the present yield is lower than the yield to maturity i.e. the current market rate

Therefore by going through the options, the above is the answer and the same is to be considered

Hence, all the other options are incorrect

User Wuxb
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