If a Bond's Purchase Price Equals the Face Value The

question 44

Multiple Choice

If a bond's purchase price equals the face value the:

• A) coupon rate equals the current yield, which is less than the yield to maturity.
• B) current yield equals the yield to maturity, which exceeds the coupon rate.
• C) coupon rate equals the yield to maturity, which equals the current yield.
• D) coupon rate does not equal the current yield, which does not equal the yield to maturity.

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