A bond with a face value of $1,000 has annual coupon payments of $100 and was issued 12 years ago. The bond currently sells for $1,000 and has 8 years left to maturity. This bond's _________ must be 10%. I. Yield to maturity.
II) Current yield.
III) Coupon rate

Question

Quizplus · Accepted Answer

The bond's yield to maturity, current yield, and coupon rate are all 10% because the bond sells at its face value, and the annual coupon payment is $100, which is 10% of the $1,000 face value.

A Bond with a Face Value of $1,000 Has Annual