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Which of the following is most likely a correct statement? I. For a discount bond, the yield to maturity = realized return. II. If the

Which of the following is most likely a correct statement?

I. For a discount bond, the yield to maturity = realized return.

II. If the coupon reinvestment rate is greater than the yield to maturity, the realized return is lower than the yield to maturity.

III. The yield to maturity represents the realized return under one condition: only if the bond is held to maturity.

II

III

None of the above.

I

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