CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Yield to maturity and current yield on a bond 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.
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