Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 4 of 10
Yield to maturity and current yield on a bond are equal ______
B. if the bond sells at a price in excess of its par value
C. when the expected holding period is greater than one year
D. if the coupon and market interest rate are equal
A. when market interest rates begin to level off
B. if the bond sells at a price in excess of its par value
C. when the expected holding period is greater than one year
D. if the coupon and market interest rate are equal
User Contributed Comments 3
| User | Comment |
|---|---|
| mattg | if it is selling @ par I will never ever buy a bond after taking this exam, I don't even wanna hear the word (chuckle) |
| johntan1979 | Chucky likes you. |
| khalifa92 | coupon rate and market interest rate equal means bond will trade at par thus the current yield will equal yield to maturity. because there is no capital gain or loss only interest payments. |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
compare, calculate, and interpret yield and yield spread measures for fixed-rate bonds
CFA® 2025 Level I Curriculum, Volume 4, Module 7.