If the current price of a bond is less than its face value,
A)an investor will receive a capital gain by holding the bond until maturity.
B)the yield to maturity must be less than the current yield.
C)the coupon rate must be greater than the current yield.
D)the coupon rate must be equal to the current yield.

Question

Quizplus · Accepted Answer

If the current price of a bond is less than its face value, it is selling at a discount. The investor can hold the bond until maturity and receive the full face value, resulting in a capital gain.

If the Current Price of a Bond Is Less Than