Multiple Choice
Suppose a coupon bond with a par value of $1,000 is currently priced at $950 and has a coupon of $40.Which of the following is TRUE?
A) current yield > coupon rate
B) current yield < coupon rate
C) Coupon rate has risen.
D) Coupon rate has declined.
Correct Answer:
Verified
Correct Answer:
Verified
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