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A premium bond that pays $60 in interest annually matures in seven years. The bond was originally issued three years ago at par. Which one
A premium bond that pays $60 in interest annually matures in seven years. The bond was originally issued three years ago at par. Which one of the following statements is accurate in respect to this bond today? |
A.The coupon rate is greater than the current yield. |
B.The yield-to-maturity equals the current yield. |
C.The face value of the bond today is greater than it was when the bond was issued. |
D.The yield-to-maturity is less than the coupon rate. |
E.The bond is worth less today than when it was issued. |
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