Question
QUESTION 10 Bond A has a coupon rate of 10% and a yield of 13%. Bond B has coupon rate of 5% and sells for
QUESTION 10
Bond A has a coupon rate of 10% and a yield of 13%. Bond B has coupon rate of 5% and sells for the same price as Bond A. Both bonds have the same face value and maturity. From this, which of the followings is the most inappropriate statement?
| A. | The yield of Bond B is greater than 5%. | |
| B. | Both bonds are discount bonds. | |
| C. | Bond A is a discount bond. | |
| D. | The yield of Bond B is less than 10%. |
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Handbook Of Financial Markets Dynamics And Evolution
Authors: Thorsten Hens
1st Edition
0323165478, 978-0323165471
