Question
A 15-year corporate bond has an annual coupon of 7%. The bond is currently selling at par ($1,000). Which of the following statements is correct?
A 15-year corporate bond has an annual coupon of 7%. The bond is currently selling at par ($1,000). Which of the following statements is correct?
Group of answer choices
The bonds expected capital gains yield is zero.
The bonds yield to maturity is above 7%.
The bonds current yield is above 7%.
The bonds current yield is less than its expected capital gains yield.
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
