If the Purchase Price of a Bond Exceeds the Face

question 60

Multiple Choice

If the purchase price of a bond exceeds the face value, the yield to maturity:

• A)Is greater than the coupon rate because the capital gain is positive
• B)Will equal the current yield
• C)Will be less than the coupon rate because the capital gain will be negative
• D)Will be greater than the current yield

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The shared values, norms, and practices that are common within a particular group, society, or community, influencing behavior and perceptions.

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