Question
Which of the following is true about a bond's price, it's capital gain yield, it's current yield, and it's YTM? Hint: Think about what it
Which of the following is true about a bond's price, it's capital gain yield, it's current yield, and it's YTM? Hint: Think about what it means for a bond's price if it is selling at a premium.
| If a bond is selling for a premium, the bond will have a negative capital gain yield, a positive current yield, and a positive YTM. | |
| If a bond is selling for a premium, the bond will have a positive capital gain yield, a positive current yield, and a positive YTM. | |
| If a bond is selling for a premium, the bond will have a negative capital gain yield, a positive current yield, and a negative YTM. | |
| If a bond is selling for a premium, the bond will have a positive capital gain yield, a positive current yield, and a negative YTM |
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