If the Current Price of a Bond Is Less Than

question 72

Multiple Choice

If the current price of a bond is less than its face value,

• A)an investor will receive a capital gain by holding the bond until maturity.
• B)the yield to maturity must be less than the current yield.
• C)the coupon rate must be greater than the current yield.
• D)the coupon rate must be equal to the current yield.

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Definitions:

Chevy Vehicles

A range of automobiles manufactured by Chevrolet, an American automobile division of the General Motors Company, known for their durability, performance, and American heritage.

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