A 10-year corporate bond has an annual coupon payment of 9 percent. The bond is currently selling at par ($1,000). Which of the following statements is most correct?

Question

Quizplus · Accepted Answer

Since the bond is selling at par, its yield to maturity equals the coupon rate, which is 9 percent. The current yield is also 9 percent because the bond is at par. If the yield to maturity remains constant, the bond's price will remain at par. Therefore, all statements are correct.

A 10-Year Corporate Bond Has an Annual Coupon Payment of 9