Multiple Choice
If the coupon payments are not reinvested during the life of the issue then the
A) Promised yield is greater than the realized yield.
B) Promised yield is less than the realized yield.
C) Nominal yield declines.
D) Nominal yield is greater than the promised yield.
E) Current yield equals the yield to maturity.
Correct Answer:
Verified
Correct Answer:
Verified
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