Which One of the Following Statements Is Correct Concerning Premium

question 48

Multiple Choice

Which one of the following statements is correct concerning premium bonds?

• A)The premium increases when interest rates increase.
• B)The coupon rate is less than the current yield.
• C)As the time to maturity decreases, the premium increases.
• D)The yield to maturity is less than the coupon rate.
• E)The par value exceeds the face value.

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Definitions:

Required To Maintain

Obligatory actions or measures needed to keep a system, process, or asset in working order or to uphold a specific condition.

Manufacturer

A company or individual that produces finished goods from raw materials through the use of machinery and labor, involved in the industrial sector of the economy.

Direct Lease

A lease agreement where the lessee directly leases the asset from the owner or lessor without using a third party.

Lessors Firm

A company that leases assets or property to another party, known as the lessee, under a contractual agreement.