Question
A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used
A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Which one of the following applies to a premium bond?
a. Coupon rate = Current yield = Yield to maturity
b. Coupon rate > Yield to maturity > Current yield
c. Yield to maturity > Current yield > Coupon rate
d. Coupon rate < Yield to maturity < Current yield
e. Coupon rate > Current yield > Yield to maturity
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Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
