Question
Stephenson Co.'s 10-year bond with a face value of $1,000 currently sells for $950. Which of the following statements is CORRECT? a. The bond's current
Stephenson Co.'s 10-year bond with a face value of $1,000 currently sells for $950. Which of the following statements is CORRECT?
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| a. | The bond's current yield exceeds its yield to maturity. |
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| b. | The bond's yield to maturity is greater than its coupon rate. |
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| c. | The bond's current yield is equal to its coupon rate. |
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| d. | If the yield to maturity stays constant until the bond matures, the bond's price will remain at $950. |
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| e. | The bond's coupon rate exceeds its current yield.
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Recent Advances In Computational Finance
Authors: Nikolaos S. Thomaidis, Jr. Dash, Gordon H.
1st Edition
1626181233, 978-1626181236
