If a bond's yield to maturity exceeds its coupon rate, the bond's:

A. current yield is equal to the coupon rate.
B. price must be less than its par value.
C. maturity value is more than its face value.
D. current yield is equal to the capital gain on the maturity of the bond.
E. maturity value is less than the bond's market value.


Answer: B

Business

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