Question
Which of the following statements is true of the yield to maturity for a bond? The yield to maturity for a bond that sells at
Which of the following statements is true of the yield to maturity for a bond?
The yield to maturity for a bond that sells at its par value is equal to the present value of interest payments received from the bond.
The yield to maturity for a bond that sells at its par value entirely comprises an interest yield and has a zero expected capital gains yield.
The yield to maturity for a bond that sells at its par value comprises a capital gains yield equal to the face value of the bond.
The yield to maturity for a bond that sells at its par value comprises an interest yield equal to the capital yield on the bond.
The yield to maturity for a bond that sells at its par value is equal to the future value of interest payments received from the bond.
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
