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Select all that apply to get credit. If two bonds have the same market price and

ID: 2801690 • Letter: S

Question

Select all that apply to get credit.

If two bonds have the same market price and the same coupon rate then they will have the same current yield

The yield to maturity applies only to bonds that are callable

The yield to call provides information about the return that investors get if they buy the bond at the current price, collect coupons until the bond is called by the issuer.

Yield to maturity and current yield are always identical

If two bonds have the same date to maturity and the same coupon rate then they must have the same current yield

cant figure this out, help !

If two bonds have the same market price and the same coupon rate then they will have the same current yield

The yield to maturity applies only to bonds that are callable

The yield to call provides information about the return that investors get if they buy the bond at the current price, collect coupons until the bond is called by the issuer.

Yield to maturity and current yield are always identical

If two bonds have the same date to maturity and the same coupon rate then they must have the same current yield

Explanation / Answer

Answer )

1) False : The bond should have the same par value also.

2) False: Applies to all bonds

3) True

4) False: they are different

5) False: They should also have the same par value

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