A Treasury bond has an annual coupon of 8% and a 7.5 percent interest to maturity. Which of the comments below is the most accurate? a. The bond already has a yield of more than 8%. b. The bond is sold for more than its face value. c. If the yield to maturity is stable, the bond's price should decrease with time. d. Both b and c are valid statements. e. All of the above claims are true.
A Treasury bond has an annual coupon of 8% and a 7.5 percent interest to maturity. Which of the comments below is the most accurate? a. The bond already has a yield of more than 8%. b. The bond is sold for more than its face value. c. If the yield to maturity is stable, the bond's price should decrease with time. d. Both b and c are valid statements. e. All of the above claims are true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Treasury bond has an annual coupon of 8% and a 7.5 percent interest to maturity. Which of the comments below is the most accurate?
a. The bond already has a yield of more than 8%.
b. The bond is sold for more than its face value.
c. If the yield to maturity is stable, the
d. Both b and c are valid statements.
e. All of the above claims are true.
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