A customer buys a 5% bond at par. The bond is callable in 5 years at par and matures in 10 years. Which of the following statements is TRUE?
A) YTC is the same as YTM.
B) YTC is higher than YTM.
C) YTC is lower than YTM.
D) Nominal yield is higher than either YTM or YTC.
Answer: A) YTC is the same as YTM.