ABC Which of the following statenfents is most CORRECT? B3 1. The duration of a 10-year coupon bond is always greater th
Posted: Sat Feb 26, 2022 9:09 am
ABC Which of the following statenfents is most CORRECT? B3 1. The duration of a 10-year coupon bond is always greater than the duration of a 10-year zero coupon bond. 2. The yield to call is always greater than the yield to maturity. 3. If the yield on a two-year bond is greater than the yield on a one-year bond and the pure expectations theory is correct, this implies that the market expects that one-year rates one year from now will be less than they are today. 4. If a bond's coupon rate is less than its yield to maturity, this implies that the bond is selling at a price less than its par value. L 5. All the statements above are correct.