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The Yield to Maturity Assumes Which One of the Following

Question 35

Multiple Choice

The yield to maturity assumes which one of the following?


A) The bond is purchased at par value.
B) All interest payments earn the latest rate of market interest.
C) The bond is called on the earliest possible date.
D) The bond is a pure discount bond.
E) All coupon payments are reinvested at the yield to maturity rate.

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