***Bond's yield correct statement with discussion***
15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT Answer
· The bond’s coupon rate exceeds its current yield.
· The bond’s current yield exceeds its yield to maturity.
· The bond’s yield to maturity is greater than its coupon rate.
· The bond’s current yield is equal to its coupon rate.
· If the yield to maturity stays constant until the bond matures, the bond’s price will remain at $850