Always lower than bond equivalent yield on same security

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Reference no: EM13910977

Which of the following statement is true?

A. Discount yield is always lower than bond equivalent yield on the same security.

B. Discount yield is always higher than bond equivalent yield on the same security.

C. Discount yield is always equal to bond equivalent yield on the same security.

D. Discount yield can be lower or higher than bond equivalent yield on the same security.

Reference no: EM13910977

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