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Which of the following are true? Consider each one carefully. Assume all else equal. Choose more than 1. O Multiple answers: You can select more
Which of the following are true? Consider each one carefully. Assume all else equal. Choose more than 1. O Multiple answers: You can select more than one option o A A bond with an annual coupon of $100 and a yield of 9% will sell for more than $1000. B A bond that has a yield of 4% and sells for $980 must have a coupon rate that is less than 4%. C A bond's yield to maturity is the same as the market's required return on the bond. o D A zero-coupon bond must always sell for less than par value. O E A bond with coupon rate of 6% and a yield of 7% is a premium bond. A bond with a coupon rate of 8% and a yield of 8% must sell for more than a bond with a coupon rate of 4% and a yield of 4%. O G Investors that have a very low tax rate would usually prefer a corporate bond over a municipal bond. IF the after-tax yield on a corporate bond is 5% and the yield on a municipal bond is 4.8% you would prefer the corporate bond. o i On the date that a coupon-paying bond matures the bondholder will receive only $1000
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