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33) a) d) e) 34) a) b) e) 35) a) b) c) d) e) Which of the following is incorrect? A discount bond is always
33) a) d) e) 34) a) b) e) 35) a) b) c) d) e) Which of the following is incorrect? A discount bond is always having a built-in capital gain if YTM curve is flat a premium bond is always having a built-in capital gain when YTM is constant as time to maturity reduces the bond price gets closer to its face value The YTM is not always a basis for making decision by an investor when Rs 1000 face value bond is purchased at Rs 1100 its price declines each year if YTM remains constant Which of the following is incorrect? If YTM > the coupon rate(CR) the company may call the bonds before maturity if CR is the YTM then a company may not call the bonds at call time the investor earns only YTC when a bond is called when a bond is called the YTM may not be relevant criterion when YTM
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