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If a Bond Is Selling for a Discount, That Implies

Question 8

Multiple Choice

If a bond is selling for a discount, that implies
​1) interest rates have fallen
2) interest rates have risen
3) the yield to maturity exceeds the current yield
4) the yield to maturity is less than the current yield


A) ​1 and 3
B) ​1 and 4
C) ​2 and 3
D) ​2 and 4

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