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A bond with a 10 year maturity and a coupon rate of 4% and a face value of $1000 is priced at $990. Let the
A bond with a 10 year maturity and a coupon rate of 4% and a face value of $1000 is priced at $990. Let the yield to maturity be denoted by y. Which of the following statements is true?
y > 4.00%
| y times the face value equals the coupon rate |
| y < 4.00% |
| y = 4.00% |
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
