The Approximate Yield to Maturity of a Bond Is Greater

question 65

Multiple Choice

The approximate yield to maturity of a bond is greater than the stated rate of interest when:

• A)the bond is purchased at face value.
• B)the bond is purchased at a discount.
• C)the bond is purchased at a premium.
• D)the market rates of interest decline.
• E)the market rates of interest are constant.

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