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A 1 5 - year bond with a face value of $ 1 , 0 0 0 currently sells for $ 8 5 0 .
A year bond with a face value of $ currently sells for $ Which of the following statements is CORRECT?
a The bond's coupon rate exceeds its current yield.
b The bond's current yield exceeds its yield to maturity.
c The bond's yield to maturity is greater than its coupon rate.
d The bond's current yield is equal to its coupon rate.
e If the yield to maturity stays constant until the bond matures, the bond's price will remain at $
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Financial Valuation
Authors: James R. Hitchner
4th Edition
1119286603, 978-1119286608
