Which Statement Regarding Bond Yields Is True

question 128

Multiple Choice

Which statement regarding bond yields is true?

• A)If a coupon bond is selling at a premium, then the bond's current yield is zero.
• B)If a bond is selling at a discount, the yield to call is a better measure of the expected return than the yield to maturity.
• C)The current yield on Bond A exceeds the current yield on Bond B. Therefore, Bond A must have a higher yield to maturity than Bond B.
• D)If a coupon bond is selling at par, its current yield equals its yield to maturity.

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