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Which of the following statements are correct? The yield to maturity is the discount rate that makes the bond's price equal to the present value

Which of the following statements are correct?

  1. The yield to maturity is the discount rate that makes the bond's price equal to the present value of the bond's future coupon payments and its face value.
  2. The difference between the yield on a corporate bond and the yield on a Treasury bond with the same maturity is called the default spread.

C. As a bond approaches maturity, its price will approach its face value.

D. Zero-coupon bonds have a YTIMAof zero.

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