10-Year Corporate Bond Has an Annual Coupon of 9

question 26

Multiple Choice

10-year corporate bond has an annual coupon of 9%.The bond is currently selling at par Which of the following statements is NOT CORRECT?

• A)The bond's expected capital gains yield is positive.
• B)The bond's yield to maturity is 9%.
• C)The bond's current yield is 9%.
• D)If the bond's yield to maturity remains constant, the bond will continue to sell at par.
• E)The bond's current yield exceeds its capital gains yield.

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