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If a Bond Is a Par Bond, Then

Question 1

Multiple Choice

If a bond is a par bond, then:


A) the yield to maturity is less than the coupon rate.
B) the yield to maturity is greater than the coupon rate.
C) the yield to maturity is equal to the coupon rate.
D) its duration must be greater than its maturity.
E) its duration must be equal to its maturity.

Correct Answer:

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