IF AN INVESTOR PURCHASES A BOND WHEN ITS CURRENT YIELD IS LESS THAN...

4. - EXAM SOLUTION 13 FUNDAMENTALS OF CORPORATE FINANCE, 4TH EDITION BREALEY
EXAM SOLUTION 13 FUNDAMENTALS OF CORPORATE FINANCE, 4TH EDITION BREALEY
4. If an investor purchases a bond when its current yield is less than the coupon rate, then the bond's price will be expected to: A) be less than the face value at maturity. B) Exceed the face value at maturity. C) Decline over time, reaching par value at maturity. D) Increase over time, reaching par value at maturity.