- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 7. Yield and Yield Spread Measures for Fixed-Rate Bonds
- Subject 2. Other Yield Measures, Conventions, and Accounting for Embedded Options
CFA Practice Question
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
Correct Answer: D
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. |