When Should an Investor Calculate Both Yield to Maturity and Yield

question 33

Multiple Choice

When should an investor calculate both yield to maturity and yield to call?

• A)Whenever there is a call provision
• B)When the sum of the present values of the interest payments exceeds the call price
• C)When the market price is greater than or equal to the call price
• D)Whenever the funds can be reinvested
• E)When interest rates increase above the coupon rate

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Definitions:

Section 1231 Property

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