A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,100). Which of the following statement is correct? Selected Answer: The bond’s current yield is 5%. Answers: The bond’s yield to maturity is 3.78%. The bond’s current yield is 5%. If the bond’s yield to maturity remains constant, the bond’s price will remain at par. The bond’s capital gain yield is 0%
A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,100). Which of the following statement is correct? Selected Answer: The bond’s current yield is 5%. Answers: The bond’s yield to maturity is 3.78%. The bond’s current yield is 5%. If the bond’s yield to maturity remains constant, the bond’s price will remain at par. The bond’s capital gain yield is 0%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at par ($1,100). Which of the following statement is correct? |
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