Tough:
Bond yields and prices Answer: b Diff: T
56. Which of the following statements is most correct?
a. If a bond’s yield to maturity exceeds its coupon rate, the bond’s current yield must also exceed its coupon rate.
b. If a bond’s yield to maturity exceeds its coupon rate, the bond’s price must be less than its maturity value.
c. If two bonds have the same maturity, the same yield to maturity, and the same level of risk, the bonds should sell for the same price regardless of the bond’s coupon rate.
d. Statements b and c are correct.
e. None of the statements above is correct.
Share with your friends: | 
