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Question
Which one of the following statements is correct concerning premium bonds?A. The premium increases when interest rates increase.
B. The coupon rate is less than the current yield.
C. As the time to maturity decreases, the premium increases.
D. The yield to maturity is less than the coupon rate.
E. The par value exceeds the face value.
Answer
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Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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