The bond current yield is equal to its coupon rate, Finance Basics

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The bond current yield is equal to its coupon rate

15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT Answer
· The bond’s coupon rate exceeds its current yield.

· The bond’s current yield exceeds its yield to maturity.

· The bond’s yield to maturity is greater than its coupon rate.

· The bond’s current yield is equal to its coupon rate.

· If the yield to maturity stays constant until the bond matures, the bond’s price will remain at $850

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Finance Basics: The bond current yield is equal to its coupon rate

Reference No:- TGS0516380

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: The bond current yield is equal to its coupon rate

Reference No:- TGS0516380

Recent Questions Asked Finance Basics

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