Which of the Following Is True

question 80

Multiple Choice

Which of the following is true?

• A) The YTC is greater than the coupon rate, because the call price is greater than the bond's current price.
• B) The YTC is greater than the coupon rate, because the call price is smaller than the bond's current price.
• C) The YTC is greater than the coupon rate, because the call price is equal to the bond's current price.

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