A 15-Year Bond with a Face Value of $1,000 Currently

question 77

Multiple Choice

A 15-year bond with a face value of $1,000 currently sells for $850.Which of the following statements is CORRECT?

• A) The bond's coupon rate exceeds its current yield.
• B) The bond's current yield exceeds its yield to maturity.
• C) The bond's yield to maturity is greater than its coupon rate.
• D) The bond's current yield is equal to its coupon rate.
• E) If the yield to maturity stays constant until the bond matures,the bond's price will remain at $850.

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Definitions:

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