If a Bond Is Selling for a Premium, That Implies​

question 12

Multiple Choice

If a bond is selling for a premium, that implies​
1) interest rates have risen
2) interest rates have fallen
3) the yield to maturity exceeds the current yield
4) the yield to maturity is less than the current yield

• A)​1 and 3
• B)​1 and 4
• C)​2 and 3
• D)​2 and 4

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Definitions:

6 Months

A period of time equal to approximately half a year, often used to mark significant milestones in development or projects.

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The process of creating and expressing language through speaking, writing, or gesture.

Linguistic Comprehension

The ability to understand spoken or written language.

Fluency

The ability to express oneself easily and articulately, especially in speaking or writing.