For a Premium Bond, The

question 24

Multiple Choice

For a premium bond, the:

• A)current yield is equal to the coupon rate but less than the yield to maturity.
• B)yield to maturity exceeds both the coupon rate and the current yield.
• C)coupon rate is equal to the yield to maturity but less than the current yield.
• D)current yield is less than either the coupon rate or the yield to maturity.
• E)coupon rate exceeds both the yield to maturity and the current yield.

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