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A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,000). Which of the following statement is

A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,000). Which of the following statement is NOT correct?

  1. The bonds yield to maturity is 5%.
  2. The bonds current yield is 5%.
  3. If the bonds yield to maturity remains constant, the bonds price will remain at par.
  4. The bonds capital gain yield is 5%.

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