If a bond is selling at par value, which of the following statements is correct?
A) The current yield must equal the coupon rate.
B) The current yield must equal the yield to maturity.
C) Both of these statements are correct.
D) None of these choices are correct.

Question

Quizplus · Accepted Answer

When a bond is selling at par value, both the current yield and the yield to maturity equal the coupon rate, making both statements A and B correct.

If a Bond Is Selling at Par Value, Which of the Following