13. A 10-year corporate bond has an annual coupon payment of 9 percent. The bond is currently selling at par ($1,000). Which of the following statements is most correct? a. The bond’s yield to maturity is 9 percent. b. The bond’s current yield is 9 percent. c. If the bond’s yield to maturity remains constant, the bond’s price will remain at par. d. Statements a and c are correct. e. All of the statements above are correct.
13. A 10-year corporate bond has an annual coupon payment of 9 percent. The bond is currently selling at par ($1,000). Which of the following statements is most correct? a. The bond’s yield to maturity is 9 percent. b. The bond’s current yield is 9 percent. c. If the bond’s yield to maturity remains constant, the bond’s price will remain at par. d. Statements a and c are correct. e. All of the statements above are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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13. A 10-year corporate bond has an annual coupon payment of 9 percent. The
bond is currently selling at par ($1,000). Which of the following
statements is most correct?
a. The bond’s yield to maturity is 9 percent.
b. The bond’s current yield is 9 percent.
c. If the bond’s yield to maturity remains constant, the bond’s price
will remain at par.
d. Statements a and c are correct.
e. All of the statements above are correct.
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