Question
A 10% coupon 15-year bond that was issued at par with a face value of $1,000 currently sells for $975. Which of the following statements
A 10% coupon 15-year bond that was issued at par with a face value of $1,000 currently sells for $975. Which of the following statements is CORRECT?"
| a. | The bond's capital gains yield is negative. | |
| b. | The bond's current yield exceeds its yield to maturity. | |
| c. | The bond's capital gains yield is positive | |
| d. | All of the above are true |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
