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The Yield to Maturity on a Discount Bond Is

Question 25

Multiple Choice

The yield to maturity on a discount bond is:


A) less than both the current yield and the coupon rate
B) greater than both the current yield and the coupon rate
C) equal to the current yield but greater than the coupon rate
D) less than the current yield but greater than the coupon rate
E) equal to both the coupon rate and the current yield

Correct Answer:

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