Assume
that the par value of a bond is $1,000. Consider a bond where the
coupon rate is 9% and the current yield is 10%. Which of the following
statements is true?
A. The current yield was a lot less than 9% when the bond was first issued
B. The market value of the bond is more than $1,000
C. The market value of the bond is less than $1,000
D. The current yield was a lot greater than 9% when the bond was first issued
A. The current yield was a lot less than 9% when the bond was first issued
B. The market value of the bond is more than $1,000
C. The market value of the bond is less than $1,000
D. The current yield was a lot greater than 9% when the bond was first issued
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