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Which of the following is most CORRECT? A. If current interest rates are above the fixed coupon rate of a bond, that bond will sell
Which of the following is most CORRECT? A. If current interest rates are above the fixed coupon rate of a bond, that bond will sell at a premium. B. Zero coupon bonds pay no annual interest and are issued at a premium to their par value. C. A fixed-rate bond will sell at a premium when its coupon interest rate is equal to the going rate of interest, kd. D. The price of an existing bond moves in the same direction as interest rates (i.e. if interest rates rise, bond prices also rise). E. If a corporation's bonds are selling at a discount, then the YTC is probably not the expected return for the investor. A B C D
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