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Which of the Following Statements Is CORRECT

Question 12

Multiple Choice

Which of the following statements is CORRECT?


A) If a coupon bond is selling at par, its current yield equals its yield to maturity.
B) If a coupon bond is selling at a discount, its price will continue
To decline until it reaches its par value at maturity.
C) If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero
Coupon bond.
D) If a bond's yield to maturity exceeds its annual coupon, then the
Bond will trade at a premium.
E) If a coupon bond is selling at a premium, its current yield equals
Its yield to maturity.

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