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Which of the Following Is True

Question 126

Multiple Choice

Which of the following is true?


A) If the yield to maturity is less than the coupon rate, the bond will sell at a premium.
B) Market prices and interest rates are directly correlated.
C) If the yield to maturity is greater than the coupon rate, the bond will sell at a premium.
D) Yield to maturity is not related to the bond maturity.

Correct Answer:

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