Stephenson Co

question 98

Multiple Choice

Stephenson Co.'s 15-year bond with a face value of $1,000 currently sells for $850.Which of the following statements is CORRECT?

• A) The bond's current yield exceeds its yield to maturity.
• B) The bond's yield to maturity is greater than its coupon rate.
• C) The bond's current yield is equal to its coupon rate.
• D) If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850.
• E) The bond's coupon rate exceeds its current yield.

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