The yield to maturity on a 1000 face value coupon bond is


The yield to maturity on a $1000 face value coupon bond is 7.13% when the market price of the bond is $1,200. If the market price of the bond is $1,100 instead,

A) no conclusion can be drawn about the yield to maturity – it can be any number.

B) the yield to maturity is still equal to 7.13%.

C) the yield to maturity is lower than 7.13%.

D) the yield to maturity is higher than 7.13%.

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Financial Management: The yield to maturity on a 1000 face value coupon bond is
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