10-Year Corporate Bond Has an Annual Coupon of 9% the Bond

question 1

Multiple Choice

10-year corporate bond has an annual coupon of 9% The bond is currently selling at par ($1,000) Which of the following statements is NOT CORRECT?

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

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