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Which of the Following Statements Is CORRECT

Question 44

Multiple Choice

Which of the following statements is CORRECT?


A) if a bond's yield to maturity exceeds its coupon rate, the bond will sell at par.
B) all else equal, if a bond's yield to maturity increases, its price will fall.
C) if a bond's yield to maturity exceeds its coupon rate, the bond will sell at a premium over par.
D) all else equal, if a bond's yield to maturity increases, its current yield will fall.
E) a zero coupon bond's current yield is equal to its yield to maturity.

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