Which one of the following relationships is stated correctly? Multiple Choice The capital gains yield is equal to zero for a zero coupon bond. Increasing the coupon rate decreases the current yield, all else constant. Decreasing the time to maturity increases the price of a discount bond, all else constant. The coupon rate exceeds the current yield when a bond sells at a discount.
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Home » Business » Which one of the following relationships is stated correctly? Multiple Choice The capital gains yield is equal to zero for a zero coupon bond. Increasing the coupon rate decreases the current yield, all else constant.