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The Current Yield on a Bond Is a Good Approximation

question 69

True/False

The current yield on a bond is a good approximation of the bond's yield to maturity when the bond matures in five years or less and its price differs from its par value by a large amount.


Definitions:

Rumour Crowd

A group of individuals who disseminate, exchange, and amplify rumors, often contributing to the spread of unverified information or misinformation.

Expressive Crowd

A collection of people who gather intentionally to express their emotions.

Conventional Crowd

A collection of individuals who come together for a specific event or purpose, often characterized by standardized behaviors.

Casual Crowd

A temporary gathering of individuals drawn together by a specific event or interest without a clear organizational structure.

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