Which of the Following Statements Is True of the Yield

question 85

Multiple Choice

Which of the following statements is true of the yield to maturity for a bond?

• A) The yield to maturity for a bond that sells at its par value comprises a capital gains yield equal to the face value of the bond.
• B) The yield to maturity for a bond that sells at its par value entirely comprises an interest yield and has a zero expected capital gains yield.
• C) The yield to maturity for a bond that sells at its par value comprises an interest yield equal to the capital yield on the bond.
• D) The yield to maturity for a bond that sells at its par value is equal to the present value of interest payments received from the bond.
• E) The yield to maturity for a bond that sells at its par value is equal to the future value of interest payments received from the bond.

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