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Which of the following statements is/are true?

Which of the following statements is/are true?


I. Current yield is equal to the coupon rate, if the market price is equal to the face value of the bond.
II. When the required rate of return (kd) is greater than the coupon rate, the value of the bond is less than its par value.
III. Current yield is equal to the interest paid divided by the face value of the bond.


[A]Only (I) above
[B]Both (I) and (II) above
[C]Both (I) and (III) above
[D]Both (II) and (III) above

Dec 28 2017 View more View Less

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