Which of the following statements regarding bond current yields is NOT true?
A) If a bond is selling at a discount to par, then its current yield will be less than its yield to maturity.
B) If a bond is selling at its par value, then its current yield equals its yield to maturity.
C) If a bond is selling at a premium, then its current yield will be greater than its yield to maturity.
D) A bond's current yield will remain unchanged as the bond's term to maturity changes.
Correct Answer:
Verified
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