Sunday

December 21, 2014

December 21, 2014

Posted by **Anonymous** on Monday, September 26, 2011 at 12:21am.

If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity.

On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss.

On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is not expected to pay any cash coupon interest.

If a coupon bond is selling at par, its current yield equals its yield to maturity.

The current yield on Bond A exceeds the current yield on Bond B; therefore, Bond A must have a higher yield to maturity than Bond B.

**Answer this Question**

**Related Questions**

Finance - Which of the following statements about the relationship between yield...

Finance - A 12-year bond has an annual coupon rate of 9%. The coupon rate will ...

Finance - Which of the following statments is CORRECT? a. Assume that two bonds ...

bond - Assume an investor with 5 years investment horizon is considering ...

finance - The Corner Grocer has a 7-year, 6 percent annual coupon bond ...

finance - the corner grocer has a 7-year, 6 percent annual coupon bond ...

finance - the corner grocer has a 7-year, 6 percent annual coupon bond ...

Mathematics - A T-bill with face value of $10,000 and 96 days to maturity is ...

Finance - Bond Yields. An AT&T bond has 10 years until maturity, a coupon rate ...

Finance - A bond currently sells for $1,120, which gives it a yield to maturity ...