Which of the following statements is CORRECT?
a. If interest rates increase, the price of a 10...
Which of the following statements is CORRECT?
a. If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero-coupon bond.
b. If a coupon bond is selling at a premium, its current yield equals its yield to maturity.
c. If a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium.
d. If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity.
e. If a coupon bond is selling at par, its current yield equals its yield to maturity.
Answers: 3
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