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    Financial Markets and Institutions Study Set 1
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    Exam 12: The Bond Market
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    The Current Yield on a Bond Is a Good Approximation
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The Current Yield on a Bond Is a Good Approximation

Question 69

Question 69

True/False

The current yield on a bond is a good approximation of the bond's yield to maturity when the bond matures in five years or less and its price differs from its par value by a large amount.

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