Question

Consider a 10-year coupon bond with a face value of $1000, coupon payments of $50, and...

Consider a 10-year coupon bond with a face value of $1000, coupon payments of $50, and priced at $1020 today. Assume that you expect its price to be $950 in 1 year. Which of the following measures would indicate the highest rate?

Select one: Coupon rate Yield to maturity Rate of return over a holding period of 1 year. Current yield

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