Question: If the current yield on a coupon bond is lower than its coupon rate, the price of the bond must be higher than its face
If the current yield on a coupon bond is lower than its coupon rate, the
price of the bond
must be higher than its face value.
must be lower than its face value.
must be higher than it was when the current holder purchased it
must be lower than it was when the current holder purchased it
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