Corporate bond has an annual coupon

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Reference no: EM13725507

A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is INCORRECT?

a. The bond’s expected capital gains yield is positive.

b. The bond’s yield to maturity is 9%.

c. The bond’s current yield is 9%.

d. The bond’s current yield exceeds its capital gain

Reference no: EM13725507

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