e. All of the statements above are correct.
Bond concepts Answer: d Diff: E N
20. Which of the following statements is most correct?
a. If a bond is selling at par value, its current yield equals its yield to maturity.
b. If a bond is selling at a discount to par, its current yield will be less than its yield to maturity.
c. All else equal, bonds with longer maturities have more interest rate (price) risk than do bonds with shorter maturities.
d. All of the statements above are correct.
e. None of the statements above is correct.
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