If a bond is selling for a discount, that implies
1) interest rates have fallen
2) interest rates have risen
3) the yield to maturity exceeds the current yield
4) the yield to maturity is less than the current yield
A)1 and 3
B)1 and 4
C)2 and 3
D)2 and 4

Question

If a bond is selling for a discount, that implies
​1) interest rates have fallen
2) interest rates have risen
3) the yield to maturity exceeds the current yield
4) the yield to maturity is less than the current yield
A)​1 and 3
B)​1 and 4
C)​2 and 3
D)​2 and 4

Quizplus · Accepted Answer

The Answer is C

If a Bond Is Selling for a Discount, That Implies