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Which one of the following statements is true of a bond's yield to maturity? The yield to maturity of a bond is the discount rate
Which one of the following statements is true of a bond's yield to maturity? The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond. The yield to maturity of a bond is the same as the coupon rate assuming the bond price is below par value. A bond's yield to maturity is the same as the bond's realized yield if the bond is held to maturity. If the yield to maturity is less than the coupon rate, the bond will sell above par value. Which of the following statements is true? All other things being equal, short-term bonds are riskier than long-term bonds. Long-term bonds have lower price volatility than short-term bonds of similar risk. Interest rate risk decreases as maturity increases. As interest rates decline, the prices of bonds rise and as interest rates rise, the prices of bonds decline
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