Bonds current yield is equal to its yield to maturity

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Reference no: EM131493132

Which of the following statements is CORRECT?

a. A zero coupon bond's current yield is equal to its yield to maturity.

b. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at a premium over par.

c. All else equal, if a bond's yield to maturity increases, its price will fall.

d. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at par.

e. All else equal, if a bond's yield to maturity increases, its current yield will fall.

Reference no: EM131493132

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