Question
A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? a. The bonds coupon rate
A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT?
a. The bonds coupon rate exceeds its current yield.
b. The bonds current yield exceeds its yield to maturity.
c. The bonds yield to maturity is greater than its coupon rate.
d. The bonds current yield is equal to its coupon rate.
e. If the yield to maturity stays constant until the bond matures, the bonds price will remain at $850.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
