Which of the following statements is most accurate?
A. Yield to maturity is equal to the coupon rate if the bond is held to maturity.
B. Yield to maturity is the same as the coupon rate if the bond is purchased for face value and held to maturity.
C. Yield to maturity will exceed the coupon rate if the bond is purchased for face value.
D. Yield to maturity is the same as the coupon rate.
Answer: B
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The future value of a sum of money deposited in a bank will be higher if ________
A) the rate of interest is low B) the rate of inflation is low C) the returns on other assets are low D) the money is kept in the bank for a longer period of time
The classical model assumes that
a. the supply of labor is fixed b. the stock of capital and technology are fixed c. the stock of capital and technology grows at a constant rate d. the supply of labor grows at a constant rate e. the supply of labor grows at an increasing rate.