The present value of a bond that has a yield-to-maturity of 10% and pays a coupon...

The present value of a bond that has a yield-to-maturity of 10% and pays a coupon of $100 is equal to its par value.

True
False

Expert Solution

This is a True statement.

A coupon rate of 10% in a bond with a future value of $1,000 will translate to a coupon payment of $100.

The coupon rate and the yield to maturity is 10%. So the bond will sell at par.

jeff jeffy answered 2 years ago

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