15-year bond with a face value of 1000 currently sells for

Reference no: EM13393442

15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT Answer
· The bond’s coupon rate exceeds its current yield.

· The bond’s current yield exceeds its yield to maturity.

· The bond’s yield to maturity is greater than its coupon rate.

· The bond’s current yield is equal to its coupon rate.

· If the yield to maturity stays constant until the bond matures, the bond’s price will remain at $850

Reference no: EM13393442

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