Question

If you are holding a premium bond, you must expect a ________ each year until maturity. If you are holding a discount bond, you must expect a ________ each year until maturity. (In each case assume that the yield to maturity remains stable over time.)A. capital gain; capital loss
B. capital gain; capital gain
C. capital loss; capital gain
D. capital loss; capital loss

Answer 1

B capital gain capital gain