Question
Which of the following statements is most correct? Question 4 options: A) If a bond's yield to maturity exceeds its annual coupon, then the bond
Which of the following statements is most correct? Question 4 options:
A) If a bond's yield to maturity exceeds its annual coupon, then the bond will be trading at a premium.
B) If interest rates increase, the relative price change of a 10-year coupon bond will be greater than the relative price change of a 10-year zero-coupon bond.
C) If a coupon bond is selling at par, its current yield equals its yield to maturity.
D) If a bond's yield to maturity is less than its annual coupon, then the bond will be trading at a discount.
E) Both b and d are correct.
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