A 10-year corporate bond has an annual coupon payment of 10%. The bond is currently selling at par ($1,000). Which of the following statement is NOT correct?
A) The bond’s yield to maturity is 10%.
B) The bond’s current yield is 10%.
C)If the bond’s yield to maturity remains constant, the bond’s price will remain at par.
D)The bond’s capital gain yield is 10%.
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