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If a Bond Is Currently Trading at Its Face (Par)value,then

Question 57

Multiple Choice

If a bond is currently trading at its face (par) value,then it must be the case that:


A) the bond's yield to maturity is less than its coupon rate.
B) the bond's yield to maturity is equal to its coupon rate.
C) the bond's yield to maturity is greater than its coupon rate.
D) the bond is a zero-coupon bond.

Correct Answer:

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