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Which of the following statements is CORRECT? A. If a bond is selling at a discount to par, its current yield will be greater than
Which of the following statements is CORRECT?
A. | If a bond is selling at a discount to par, its current yield will be greater than its yield to maturity. | |
B. | All else equal, bonds with longer maturities have less interest rate (price) risk than bonds with shorter maturities. | |
C. | If a bond is selling at its par value, its current yield equals its capital gains yield. | |
D. | If a bond is selling at a premium, its current yield will be less than its capital gains yield. | |
E. | All else equal, bonds with larger coupons have less interest rate (price) risk than bonds with smaller coupons. |
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