Which One of the Following Must Be Correct for a Bond

question 32

Multiple Choice

Which one of the following must be correct for a bond currently selling at a premium?

• A) Its coupon rate is variable.
• B) Its current yield is lower than its coupon rate.
• C) Its yield to maturity is higher than its coupon rate.
• D) Its coupon rate is lower than the current market rate on similar bonds.

---

Definitions:

Voluminous Hippocampus

Refers to a hippocampus with a larger-than-average volume, which is associated with enhanced memory and spatial navigation abilities.

Bipolar Disorder

A mental health condition characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Mania

A mental health condition characterized by periods of extreme elevated mood or irritability.

Euphoric

A feeling of intense happiness or bliss, often with a heightened sense of well-being.