An investor purchases an 8% bond at par. Four years later, similar bonds are being...
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Accounting
An investor purchases an 8% bond at par. Four years later, similar bonds are being issued in the primary market at 9%. Which of the following statements is false regarding the outstanding 8% issue? A The outstanding 8% bond will now trade at a discount B The nominal yield will remain 8% c The YTM will be higher than the current yield D The current yield will be lower than the nominal yield
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