The yield to maturity on a bond is:
i. above the coupon rate when the bond sells at a discount and below the coupon rate when the bond sells at a premium
ii. the discount rate that will set the present value of the payments equal to the bond price
iii. equal to the true compound return on investment only if all interest payments received are reinvested at the yield to maturity.
Answers: 3
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The yield to maturity on a bond is:
i. above the coupon rate when the bond sells at a discou...
i. above the coupon rate when the bond sells at a discou...
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