# Question: a coupon bond with a face value of 1200 that...

###### Question details

A coupon bond with a face value of $1200 that pays an annual coupon of $400 has a coupon rate equal to ?

What is the *approximate* (closest whole number) yield
to maturity on a coupon bond that matures one year from today, has
a par value of $1010, pays an annual coupon of $75, and whose price
today is $1004.50?

A. 7%

B. 4%

C. 8%

D 6%

E. 5%

If the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be ____ its face value.

equal, above, below