The relationship between a bonds yield to maturity and


The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For each of the bonds listed, state whether the bond will be at a premium to par, at par, or at a discount to par:

Bond     Coupon interest rate    Yield to maturity         Price

A                 6%                              10%                       

B                 8                                    8

C                 9                                    7

D                 7                                   9

E                12                                10

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Financial Management: The relationship between a bonds yield to maturity and
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