Which Statement Regarding Bond Yields Is True

question 36

Multiple Choice

Which statement regarding bond yields is true?

• A)A zero coupon bond's current yield is equal to its yield to maturity.
• B)If a bond's yield to maturity exceeds its coupon rate, the bond will sell at par.
• C)All else being equal, if a bond's yield to maturity increases, its price will fall.
• D)If a bond's yield to maturity exceeds its coupon rate, the bond will sell at a premium over par.

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