Answered

Connect with a knowledgeable community and get your questions answered on IDNLearn.com. Get accurate and comprehensive answers to your questions from our community of knowledgeable professionals.

If a bond is purchased at a premium, the yield to maturity is A) the same as the current yield. B) lower than the nominal yield. C) higher than the nominal yield. D) higher than the current yield.

Sagot :

Adefioyelaoyeidn

If a bond is purchased at a premium, the yield to maturity is higher than

the nominal yield.

What is Nominal yield?

This is defined as the return of a bond is determined by the percentage of

the face value while Current yield deals with current market value.

Yield to maturity is the total return anticipated on a bond if the bond is

held until it matures and is usually higher than the nominal yield.

Read more about Nominal yield here https://brainly.com/question/24325177

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com is your go-to source for accurate answers. Thanks for stopping by, and come back for more helpful information.