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Which one of the following statements is true? A The coupon rate of a par value

ID: 2700247 • Letter: W

Question

Which one of the following statements is true?

A The coupon rate of a par value bond will exceed the bond's current yield B The yield to maturity on a premium bond exceeds the bond's coupon rate C The current yield on a discount bond is equal to the bond's coupon rate D A premium bond has a current yield that exceeds the bond's coupon rate E A discount bond has a coupon rate that is less than the bond's yield to maturity A The coupon rate of a par value bond will exceed the bond's current yield B The yield to maturity on a premium bond exceeds the bond's coupon rate C The current yield on a discount bond is equal to the bond's coupon rate D A premium bond has a current yield that exceeds the bond's coupon rate E A discount bond has a coupon rate that is less than the bond's yield to maturity Which one of the following statements is true?

A The coupon rate of a par value bond will exceed the bond's current yield B The yield to maturity on a premium bond exceeds the bond's coupon rate C The current yield on a discount bond is equal to the bond's coupon rate D A premium bond has a current yield that exceeds the bond's coupon rate E A discount bond has a coupon rate that is less than the bond's yield to maturity

Explanation / Answer


E A discount bond has a coupon rate that is less than the bond's yield to maturity
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