Which of the following statements is CORRECT?
A) If a coupon bond is selling at a premium, then the bond's current yield is zero.
B) If a coupon bond is selling at a discount, then the bond's expected
Capital gains yield is negative.
C) If a bond is selling at a discount, the yield to call is a better
Measure of the expected return than the yield to maturity.
D) The current yield on Bond A exceeds the current yield on Bond B.
Therefore, Bond A must have a higher yield to maturity than Bond B.
E) If a coupon bond is selling at par, its current yield equals its
Yield to maturity.
Correct Answer:
Verified
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