Which of the Following Is Correct for a Bond Currently

question 54

Multiple Choice

Which of the following is correct for a bond currently selling at a premium to par?

• A) Its current yield is higher than its coupon rate.
• B) Its current yield is lower than its coupon rate.
• C) Its yield to maturity is higher than its coupon rate.
• D) Its default risk is extremely low.

---

Definitions:

Marital Problems

Issues and conflicts arising in a marital relationship, potentially leading to dissatisfaction, separation, or divorce.

Medical School

An educational institution dedicated to teaching the art and science of medicine, leading to a degree for physicians.

Psychiatric Nurse

A specialized nurse who provides care to patients with mental health issues, often in psychiatric hospitals or mental health clinics.

Insight Therapist

A mental health professional who facilitates a patient's understanding or awareness of their own thoughts, emotions, and behaviors, often in the context of psychotherapy.