Which of the following is true with regards to the yield to call (YTC) ?
A) The YTC is greater than the coupon rate, because the call price is greater than the bond's current price.
B) The YTC is greater than the coupon rate, because the call price is smaller than the bond's current price.
C) The YTC is greater than the coupon rate, because the call price is equal to the bond's current price.
D) The YTC is greater than the coupon rate, because the call price includes a premium for the yield to maturity
Correct Answer:
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