A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000) . Which of the following statements is NOT CORRECT?
A) The bond's expected capital gains yield is positive.
B) The bond's yield to maturity is 9%.
C) The bond's current yield is 9%.
D) If the bond's yield to maturity remains constant, the bond will
Continue to sell at par.
E) The bond's current yield exceeds its capital gains yield.
Correct Answer:
Verified
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