The following statements are true. Explain why? a. If a bond"s coupon rate is higher than its yield to maturity, then the bond will sell for more than face value. b. If a bond"s coupon rate is lower than its yield to maturity, then the bond"s price will increase over its remaining maturity.
The following statements are true. Explain why.
a. If a bond's coupon rate is higher than its yield to maturity, then the bond will sell for more than face value.
b. If a bond's coupon rate is lower than its yield to maturity, then the bond's price will increase over its remaining maturity.