WHICH OF THE FOLLOWING IS CORRECT FOR A BOND CURRENTLY SELLING AT...

27. - EXAM SOLUTION 6 FUNDAMENTALS OF CORPORATE FINANCE, 4TH EDITION BREALEY
EXAM SOLUTION 6 FUNDAMENTALS OF CORPORATE FINANCE, 4TH EDITION BREALEY
27. Which of the following is correct for a bond currently selling at a premium? A) Its current yield is higher than its coupon rate. B) Its current yield is lower than its coupon rate. C) Its yield to maturity is higher than its coupon rate. D) Its default risk is extremely low.