Assuming There Is No Default Risk, Both a Premium Bond

question 66

Multiple Choice

Assuming there is no default risk, both a premium bond and a discount bond must share which one of the following characteristics?

• A)market price less than a par value bond
• B)yield to maturity less than the coupon rate
• C)maturity value equal to a par value bond
• D)current yield equal to that of a par value bond
• E)coupon rate greater than the yield to maturity

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