Which of the following statements about a bond that sells for its par value is correct?
A. The yield to maturity is comprised of a capital gains yield equal to the face value of the bond.
B. As long as market rates remain constant, the bond's capital gains yield will equal to zero.
C. The yield to maturity is comprised of an interest yield equal to the capital yield on the bond.
D. The yield to maturity is equal to the present value of interest payments received from the bond.
E. The yield to maturity is equal to the future value of interest payments received from the bond.
Answer: B
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