If the Current Price of a Bond Is Equal to Its

question 68

Multiple Choice

If the current price of a bond is equal to its face value,

• A)there is no capital gain or loss from holding the bond until maturity.
• B)the yield to maturity must be greater than the current yield.
• C)the current yield must be greater than the coupon rate.
• D)the coupon rate must be greater than the yield to maturity.

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Definitions:

Negative

Often refers to something lacking positive attributes, harmful, or undesirable in nature.

Genetic Vulnerability

Genetic vulnerability refers to the predisposition some individuals have towards certain disorders or diseases based on their genetic makeup.

Schizophrenic Disorders

A group of mental disorders characterized by significant abnormalities in perception or expression of reality, including hallucinations and delusions.

Biological Mother

The woman who genetically contributed to the creation of an offspring.