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Which of the following statements is CORRECT? If a bond is selling at a premium, this implies that the bond's yield to maturity exceeds its
Which of the following statements is CORRECT? If a bond is selling at a premium, this implies that the bond's yield to maturity exceeds its coupon rate. If a coupon bond is selling at par, its current yield equals its yield to maturity. If rates fall after its issue, a zero coupon bond could trade for an amount above its par value. If rates fall rapidly, a zero coupon bond's expected capital gains yield could become negative. If a firm is in financial distress, its bonds' yield to maturity is likely to fall.
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