Question: A 5%-coupon bond paying interest semi-annually at a face value of $1,000, has a current yield of 5.5%. The bond has 10 years to maturity.

A 5%-coupon bond paying interest semi-annually at a face value of $1,000, has a current yield of 5.5%. The bond has 10 years to maturity. This implies that the bond will have a positive change in price over time.

true or false?

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