If the current price of a bond is equal to its face value,
A)there is no capital gain or loss from holding the bond until maturity.
B)the yield to maturity must be greater than the current yield.
C)the current yield must be greater than the coupon rate.
D)the coupon rate must be greater than the yield to maturity.

Question

Quizplus · Accepted Answer

If the current price of a bond is equal to its face value, it means that the bond is selling at par value. In this case, there is no capital gain or loss from holding the bond until maturity because the investor will receive the face value of the bond at maturity, which is equal to the price they paid for the bond.

If the Current Price of a Bond Is Equal to Its