Question
Which of the following statements is most correct ? If a bond's Yield to Maturity exceeds its coupon rate, the bond's current yield must also
Which of the following statements ismost correct?
If a bond'sYield to Maturityexceeds its coupon rate, the bond's current yield must also exceed its coupon rate.
If a bond'sYield to Maturityexceeds its coupon rate, the bond's current market price must also exceed its maturity value.
If two bonds have the same maturity, the same yield to maturity, and the same level of risk, the bonds should sell for the same price regardless of the bond's coupon rate.
The first two answers are correct,but notthe third.
All three of the first three answers are correct.
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