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A Treasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT? a. The bonds required
A Treasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT?
| a. | The bonds required rate of return is less than 7.5%. |
| b. The bond has a current yield greater than 8%. | |
| c. The bond sells at a price below par. | |
| d. If the yield to maturity remains constant, the price of the bond will decline over time | |
| e. The bond sells at a discount |
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Study Guide To Accompany Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Mark Simonson
1st Edition
0321388682, 9780321388681
