In the bond market, which of the following is true about the settlement amount?

Question

Options

• AThe settlement amount is the sum of the redemption value plus all coupons paid by the issuer.
• BIf the yield and the coupon are exactly the same, the settlement amount and the face value
• CThe settlement amount is always calculated using the redemption price.
• DOn a coupon date, if the bond quotes at par, the settlement amount and the face value will be

• A
  5% (2)
• B
  14% (6)
• C
  9% (4)
• D
  72% (31)

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