A 10-year corporate bond has an annual coupon of 9 the bond


A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT?

a.   The bond’s expected capital gains yield is zero.

b.   The bond’s yield to maturity is above 9%.

c.   The bond’s current yield is above 9%.

d.   If the bond’s yield to maturity declines, the bond will sell at a discount.

e.   The bond’s current yield is less than its expected capital gains yield.

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Financial Accounting: A 10-year corporate bond has an annual coupon of 9 the bond
Reference No:- TGS01698887

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