Question

A discount bond:

Select one:

a. Has a coupon rate which is greater than the yield to maturity.

b. Has a par value which is less than the market value.

c. Has a coupon rate which is less than the market rate of interest.

d. Is selling for more than face value.

e. Is the name given to a bond that has been called prior to maturity.

Answer 1

Answer: Has a coupon rate which is less than the market rate of interest.