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Assume a Discount Bond Has a Few Years Until Maturity

Question 17

Multiple Choice

Assume a discount bond has a few years until maturity and a positive yield.All else constant,the bond's yield to maturity is


A) directly related to the time to maturity.
B) equal to the coupon rate.
C) inversely related to the bond's market price.
D) unrelated to the time to maturity.
E) less than its coupon rate.

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