Which of the following regarding the current yield on a bond is not true?
A) The current yield is superior to the coupon rate because it uses market price instead of face value.
B) The current yield is equal to the coupon rate if the bond is trading at par. .
C) The current yield does not account for difference between purchase price and redemption value.
D) The current yield shows the bond's expected rate of return if held to maturity.
Correct Answer:
Verified
Q1: A bond's intrinsic value is:
A) another name
Q2: Subtracting the inflation rate from the market
Q3: The bond market in Canada is dominated
Q4: Under the Fisher hypothesis, inflation rate were
Q6: The yield to maturity for a bond:
A)
Q7: In order to have a yield to
Q8: A yield to call calculation:
A) is best
Q9: When interest rates decrease:
A) bond prices rise.
B)
Q10: If a bond is callable, this means:
A)
Q11: A deferred call provision means:
A) the bond
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