Which of the following statements is incorrect? If we calculate a bond's yield assuming that the bond will be held untit maturity, we will have calculated the yield to call. Modifed Duration is a better measure of the change in the price of a bond when yields change and we can cakculate it uning the MDuration function: MDurationisetriemert, Maturity. Coupon, Vid, Frequency, Bmsh) The yild to maturity, an a return measure, is superior to the current yield becaune it accounts for both interest psyments and capital gains. All the answers are correct except one. Vield to call is the compound average annuai rate of return assuming that the bond wilt be called by the issuer at some point prior to the maturity date. Question 8 Which of the following statements is correct? The current yleld of a bond is a rough measure of the return eamed over the next year because it ignores compounding and the change in price that inay ockur over the life of the bond. For bonds that pay interest more frequently than annually, the annual coupon payment is multiplied by the number of aayinents per yeac. A bond's the requiled return tyleldi is equal to the coupon tate. the bood sells at discount. In most cases, bonds will be called if interest rates incresse substantialy so that the firm will swe money ty refinancing at a higher rate. All the answes are correct