False. Bonds price is inverse to yield. When you pay more for bond, you get less (effective) interest, or yield.
Monday, February 8, 2010
Bonds selling at a premium price offer a higher current yield than bonds selling at par value. TRUE OR FALSE?
Bonds selling at a premium price offer a higher current yield than bonds selling at par value. TRUE OR FALSE???Bonds selling at a premium price offer a higher current yield than bonds selling at par value. TRUE OR FALSE?
False. Bonds price is inverse to yield. When you pay more for bond, you get less (effective) interest, or yield.hardware
False. Bonds price is inverse to yield. When you pay more for bond, you get less (effective) interest, or yield.
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