A bond will sell at a discount when _________ . a. its coupon rate is greater th

Question

A bond will sell at a discount when _________ .

a. its coupon rate is greater than its current yield and its current yield is greater than its yield to maturity

b. its coupon rate is greater than its current yield and its current yield is less than its yield to maturity

c. its coupon rate is less than its current yield and its current yield is greater than its yield to maturity

d. its coupon rate is less than its current yield and its current yield is less than its yield to maturity

(Please explain why?)

Explanation / Answer

c. its coupon rate is less than its current yield and its current yield is greater than its yield to maturitya

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