Question
Which of the following statements regarding premium and discount bonds is true? A) For a premium bond, its coupon rate is greater than its current
Which of the following statements regarding premium and discount bonds is true?
A) For a premium bond, its coupon rate is greater than its current yield, and its current yield is greater than its yield to maturity.
B) For a discount bond, its coupon rate is greater than its current yield, and its current yield is greater than its yield to maturity.
C) For a premium bond, its coupon rate is greater than its current yield, and its current yield is less than its yield to maturity.
D) For a discount bond, its coupon rate is less than its current yield, and its current yield is greater than its yield to maturity.
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