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The Yield on a Coupon Bond with Face Value L,coupon

Question 8

Multiple Choice

The yield on a coupon bond with face value L,coupon C per year,and maturity T is equal to:


A) the expected return on the bond
B) the forward rate for time T - 1
C) the forward rate for time T
D) the spot rate of interest
E) the internal rate of return on the coupon bond

Correct Answer:

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