A Bond Has a Current Yield That Is Equal to the Yield

question 103

Multiple Choice

A bond has a current yield that is equal to the yield to maturity. Given this, which one of the following must also be true?

• A)The bond must pay annual interest.
• B)The maturity value must be greater than the bond price.
• C)The bond can have any maturity date.
• D)The coupon rate must exceed the current yield.
• E)The price must exceed the par value.

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Definitions:

Recall Cue

A stimulus or hint that facilitates the access or retrieval of information from memory.

Visuospatial Sketchpad

The proposed component of working memory that maintains visual or spatial information.

Episodic Buffer

A component of the working memory model that integrates information from different sources and modalities, maintaining a sense of chronological flow.

Phonological Loop

A component of working memory model that deals with the brief storage of verbal content, including both words and numbers.