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.

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Definitions:

Literacy Rates

Literacy rates indicate the percentage of people in a specific age group who can read and write within a particular population.

Frederick Douglass

An African American social reformer, abolitionist, orator, writer, and statesman who escaped from slavery and became a leader of the abolitionist movement, advocating for the rights of African Americans.

Plantation Field Work

Labor performed on plantations, typically involving the cultivation and harvesting of crops like cotton, tobacco, and sugar by enslaved Africans and African Americans in the pre-Civil War United States.

Peculiar Institution

A euphemism once used to refer to the American system of slavery, especially in the antebellum South, highlighting its distinctive and controversial nature.