Which of the following statements is CORRECT? A 15-year bond with a face value of $1,000 currently sells for $950. Question 36 options: a) The bond's current yield is equal to its coupon rate. b) If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850. c) The bond's yield to maturity is greater than its coupon rate. d) The bond's current yield exceeds its yield to maturity. e) The bond's coupon rate exceeds its current yield.
Which of the following statements is CORRECT? A 15-year bond with a face value of $1,000 currently sells for $950. Question 36 options: a) The bond's current yield is equal to its coupon rate. b) If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850. c) The bond's yield to maturity is greater than its coupon rate. d) The bond's current yield exceeds its yield to maturity. e) The bond's coupon rate exceeds its current yield.
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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Which of the following statements is CORRECT? A 15-year bond with a face value of $1,000 currently sells for $950.
Question 36 options:
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a) |
The bond's current yield is equal to its coupon rate. |
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b) |
If the yield to maturity stays constant until the bond matures, the |
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c) |
The bond's yield to maturity is greater than its coupon rate. |
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d) |
The bond's current yield exceeds its yield to maturity. |
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e) |
The bond's coupon rate exceeds its current yield. |
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