If a bond is selling for a premium, Select one: a. the yield to maturity exceeds...

Question

Question

If a bond is selling for a premium,

Select one:

a. the yield to maturity exceeds the current yield

b. the current yield exceeds the yield to maturity

c. the current yield has risen

d. the bond cannot be called

business finance

Answer 1

Answer #1

b. the current yield exceeds the yield to maturity

the above is answer..

because at premium, coupon yield > current yield > YTM.

Answer 2

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