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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 7: Interest Rates and Bond Valuation
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    What Is the Relationship Between the Current Yield and YTM
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What Is the Relationship Between the Current Yield and YTM

Question 78

Question 78

Essay

What is the relationship between the current yield and YTM for premium bonds? For discount bonds? For bonds selling at par value?

Correct Answer:

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The current yield only refers to the yie...

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