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Unformatted text preview: 10.The current yield always equals the yield to maturity on a consol bond. 11. If a coupon bond sells at par, then the yield to maturity equals the coupon rate. 12. Price of bonds and the yield to maturity are negatively related only for n>1. 13. The farther todays price of a bond is from par, the better the current yield approximates the yield to maturity. 14. The future price of a coupon bond is just as uncertain as the future price on a discount bond. 15.T he relationship between the future price and capital gains today on a discount bond is always positive. 16. The relationship between i and the capital gains on a discount bond is always negative. 17. The return on a consol bond rises as future bond price rises, but falls as today's bond price increases. 18.T he yield to maturity always equals the return on bonds....
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This document was uploaded on 12/06/2011.
- Fall '09