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10-Year Corporate Bond Has an Annual Coupon of 9

Question 38

Multiple Choice

10-year corporate bond has an annual coupon of 9%.The bond is currently selling at par Which of the following statements is NOT CORRECT?


A) The bond's expected capital gains yield is positive.
B) The bond's yield to maturity is 9%.
C) The bond's current yield is 9%.
D) If the bond's yield to maturity remains constant, the bond will continue to sell at par.
E) The bond's current yield exceeds its capital gains yield.

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