Which One of the Following Relationships Is Stated Correctly

question 85

Multiple Choice

Which one of the following relationships is stated correctly?

• A) The coupon rate exceeds the current yield when a bond sells at a discount.
• B) The call price must equal the par value.
• C) An increase in market rates increases the market price of a bond.
• D) Decreasing the time to maturity increases the price of a discount bond, all else constant.
• E) Increasing the coupon rate decreases the current yield, all else constant.

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