If a Bond's Yield to Maturity Exceeds Its Coupon Rate

question 95

Multiple Choice

If a bond's yield to maturity exceeds its coupon rate, the bond's:

• A)current yield is equal to the coupon rate.
• B)price must be less than its par value.
• C)maturity value is more than its face value.
• D)current yield is equal to the capital gain on the maturity of the bond.
• E)maturity value is less than the bond's market value.

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