Which of the Following Statements Is CORRECT

question 65

Multiple Choice

Which of the following statements is CORRECT?

• A) A zero coupon bond's current yield is equal to its yield to maturity.
• B) If a bond's yield to maturity exceeds its coupon rate,the bond will sell at par.
• C) All else equal,if a bond's yield to maturity increases,its price will fall.
• D) If a bond's yield to maturity exceeds its coupon rate,the bond will sell at a premium over par.
• E) All else equal,if a bond's yield to maturity increases,its current yield will fall.

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Definitions:

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