When the Current Yield and the Coupon Rate Are Equal

question 62

Multiple Choice

When the current yield and the coupon rate are equal, the bond is:

• A) purchased at a discount.
• B) purchased at a price that equals the face value.
• C) a zero-coupon bond.
• D) purchased at a price that exceeds its face value.

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Definitions:

Dust Particles

Tiny fragments of solid material that are suspended in the air and can accumulate on surfaces.

Abnormal Condition

Any state of health that deviates from the normal or healthy condition.

Lung

A pair of spongy, air-filled organs located on either side of the chest responsible for gas exchange between the air and the bloodstream.

Abbreviation

A shortened form of a word or phrase used for convenience.