Multiple Choice
A $1,000 face value bond purchased for $965.00, with an annual coupon of $60, and 20 years to maturity has a:
A) current yield and coupon rate equal to 6.22% and a coupon rate above this.
B) current yield equal to 6.22% and a coupon rate below this.
C) coupon rate equal to 6.00% and a current yield below this.
D) yield to maturity and current yield equal to 6.00%.
Correct Answer:
Verified
Correct Answer:
Verified
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