Which of the following is not true regarding yield to maturity?
A) Yield to maturity is also called market rate of interest.
B) When yield to maturity is equal to the coupon rate, the bond will trade at par value.
C) A callable bond always trades based on its yield to call instead of its yield to maturity.
D) Yield to maturity is the discount rate used to value the cash flows of a debt obligation.
E) The yield to maturity calculation assumes that coupon payments are reinvested in similar-yielding investments.
Correct Answer:
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