Price of a bond is below the face value-yield to maturity

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Reference no: EM13920410

1. If the quantity of bonds demanded exceeds the quantity of bonds supplied, bond prices:

A. would rise and yields would fall.

B. would fall and yields would increase.

C. will rise and yields will remain constant.

D. will rise and yields would increase

2. When the price of a bond is below the face value, the yield to maturity:

A. is below the coupon rate.

B. will be above the coupon rate.

C. will equal the current yield.

D. will equal the coupon rate.

Reference no: EM13920410

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