If a bonds coupon rate is higher than its yield to maturity

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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.

Reference no: EM13574391

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