The Yield to Maturity on a Discount Bond Is

question 24

Multiple Choice

The yield to maturity on a discount bond is:

• A)equal to both the coupon rate and the current yield.
• B)equal to the current yield but greater than the coupon rate.
• C)greater than both the current yield and the coupon rate.
• D)less than the current yield but greater than the coupon rate.
• E)less than both the current yield and the coupon rate.

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