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A Bond Has a Current Yield That Is Equal to the Yield

Question 25

Multiple Choice

A bond has a current yield that is equal to the yield to maturity. Given this, which one of the following must also be true?


A) The bond must pay annual interest.
B) The maturity value must be greater than the bond price.
C) The bond can have any maturity date.
D) The coupon rate must exceed the current yield.
E) The price must exceed the par value.

Correct Answer:

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