The current yield is a good approximation to the yield to ma

The current yield is a good approximation to the yield to maturity when: (Check all that apply,) A. the coupon rate of the bond is higher than its yield to maturity. B. the current bond price is below its face value. C. the maturity of the bond occurs over a ten-year period. D. the bond is a short-term bond. E. the bond price is very close to par.

Solution

ans 1 option c and e is correct.

ans 2 option a is correct

according to the segmented market theory, the yield curve will be upward sloping.