Multiple Choice
A $1,000 face value bond, with one year to maturity that sells for $950 and has a $40 annual coupon has a:
A) current yield and yield to maturity of 4.00%.
B) yield to maturity that equals the current yield.
C) coupon rate of 4.00% and a current yield that is below this.
D) current yield of 4.21%.
Correct Answer:
Verified
Correct Answer:
Verified
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