Bonds yield to maturity increases

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Reference no: EM131332084

1. All else equal, if a bonds yield to maturity increases, it's price will fall.

-true

-false

2. A zero coupon bond pays no interest. It is offered at par value, which is where it sells initially.

-True

-False

3. If a bonds yield to maturity exceeds its coupon rate, the bond will sell at a premium over par.

-true

-false

4. If the appropriate rate of interest on a bond is greater than its coupon rate, the market value of that bond will be above par value.

-true

-false

Reference no: EM131332084

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