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Select the statement regarding bond pricing that is true in general: ( Do not assume the redemption value is equal to the face value. )
Select the statement regarding bond pricing that is true in general:
Do not assume the redemption value is equal to the face value.
The yield to maturity is the interest rate at which the price is equal to the present
value of all the coupon payments.
If the coupon rate is equal to the yield to maturity, the price must be equal to the
face value.
A bond that is redeemed at par must have a price equal to the face value.
The modified coupon rate is equal to the coupon payment divided by the
redemption value.
If a bond is purchased at a premium, the purchase price is always greater than the
face value.
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