Which one of the following statements is true? Question 4 options: ...

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Finance

Which one of the following statements is true?

Question 4 options:

1)

The current yield on a par value bond will exceed the bond's yield to maturity.

2)

The yield to maturity on a premium bond exceeds the bond's coupon rate.

3)

A premium bond has a yield to maturity that is less than the bond's coupon rate.

4)

The current yield on a premium bond is equal to the bond's coupon rate.

5)

A discount bond has a coupon rate that is higher than the bond's yield to maturity.

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