Question
Which one of the following statements is true? The current yield on a par value bond will exceed the bond's yield to maturity. A premium
Which one of the following statements is true?
The current yield on a par value bond will exceed the bond's yield to maturity.
A premium bond has a current yield that exceeds the bond's coupon rate.
The yield to maturity on a premium bond exceeds the bond's coupon rate.
A discount bond has a coupon rate that is less than the bond's yield to maturity.
The current yield on a premium bond is equal to the bond's coupon rate.
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
