Question

In a period of historically low interest rates, what bond would most likely be called? a....

In a period of historically low interest rates, what bond would most likely be called?

a. bond selling at a discount to par

b. bond with coupon rate less than yield to maturity

c. bond selling at a premium to par

d. zero coupon bond

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Answer #1

Option C is correct

bond selling at a premium to par

in times of low interest rates, bonds selling premium to par value will be more likely called.

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