Multiple Choice
Which one of the following statements is true?
A) The current yield on a par value bond will exceed the bond's yield to maturity.
B) The yield to maturity on a premium bond exceeds the bond's coupon rate.
C) The current yield on a premium bond is equal to the bond's coupon rate.
D) A premium bond has a current yield that exceeds the bond's coupon rate.
E) A discount bond has a coupon rate that is less than the bond's yield to maturity.
Correct Answer:
Verified
Correct Answer:
Verified
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