Which of the following statements is most correct?
A) If a bond is selling for a premium, this implies that the bond's yield to maturity exceeds its coupon rate.
B) If a coupon bond is selling at par, its current yield equals its yield to maturity.
C) If rates fall after its issue, a zero coupon bond could trade for an amount above its par value.
D) Statements b and c are correct.
E) None of the statements above is correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is most correct?
A) If a bond is selling for a premium, this implies that the bond's yield to maturity exceeds its coupon rate.
B) If a coupon bond is selling at par, its current yield equals its yield to maturity.
C) If rates fall after its issue, a zero coupon bond could trade for an amount above its par value.
D) Statements b and c are correct.
E) None of the statements above is correct.

Which of the Following Statements Is Most Correct