The current yield on a par value bond will exceed the bonds


Which one of the following statements is true?

A. The current yield on a par value bond will exceed the bond's yeild to maturity

B. The yield to maturity on a premium bond exceeds the bond's coupon rate

C. The current yield on a premium bond is equal to the bond's coupon rate

D. A premium bond has a current yield that exceeds the bond's coupon rate

E. A discount bond has a coupon rate that is less than the bond's yield to maturity

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Financial Management: The current yield on a par value bond will exceed the bonds
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