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Assume a bond's yield to maturity stays constant over its remaining life. For a discount bond, capital gains yield _____ each year as the bond
Assume a bond's yield to maturity stays constant over its remaining life. For a discount bond, capital gains yield _____ each year as the bond approaches maturity.
a) increases | ||
b) remains unchanged | ||
c) can either increase or decrease, depending on the size of the discount | ||
d) decreases |
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