Question
If an investor pays $1,025 for a bond with a face value of $1,000, it follows that the current yield is __________ than the coupon
If an investor pays $1,025 for a bond with a face value of $1,000, it follows that the current yield is __________ than the coupon rate, and the investor will realize a capital __________ if he holds the bond until maturity.
| a. | greater; gain | |
| b. | less; gain | |
| c. | greater; loss | |
| d. | less; loss |
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
