The return to bondholders is guaranteed to equal the yield to maturity only if the bond...
The return to bondholders is guaranteed to equal the yield to
maturity only if the bond is held until maturity.
True
False
The discount rate that makes the present value of a bond's payments equal to its price is termed the:
| A. |
dividend yield |
|||||||||||||
| B. |
yield to maturity |
|||||||||||||
| C. |
current yield |
|||||||||||||
|
D. |
coupon rate Assume a bond is currently selling at par value. What will happen in the future if the yield on the bond is lower than the coupon rate?
|
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The return to bondholders is guaranteed to equal the yield to
maturity only if the bond...
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Please answer in electronic text. Thank you!
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Please answer in electronic text. Thank you!
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