Question: A bond's current yield is 5 . 7 5 % per year and the bond's yield to maturity is 5 . 1 4 % per
A bond's current yield is per year and the bond's yield to maturity is per year. Therefore, the bond is trading at a to its par value. If the bond's yield to maturity does not change, the bond's price will be next year.
Dircount, higher
Premium, the same
Premium, higher
Discount, lower
Premium, lower
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