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Yuki888 [10]
3 years ago
5

When a bond trades at a premium, which bond yield will be the lowest?

Social Studies
1 answer:
jekas [21]3 years ago
6 0

Answer:

Understand that the YTM is the lowest for a premium bond because it not only reflects the fact that the bond is being purchased for more than par; but it also reflects the annual loss of the bond premium as a reduction of the investment return. A corporation has issued 10% AA rated sinking fund debentures at par.

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Answer:

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Explanation:

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Answer:

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