Respuesta :
The approximate yield to maturity of a bond is greater than the stated rate of interest when the bond is purchased at a discount. Thus, option E is correct.
What is a bond?
An amount of investment revenue known as a bond reflects a loan made by a shareholder to a debtor, typically a corporation or institution. there are various types of bonds available in the market, which often vary according to the duration.
If a person gets a bond that else a higher value after the purpose, that movement to the issue at rising of a discount and later the price of increased at the time of issue. Therefore, option E is the correct option.
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The question is incomplete, the complete question will be :
a. market rates of interest decline.
b. market rates of interest are constant
c. bond is purchased at face value.
d. bond is purchased at a premium.
e. bond is purchased at a discount.
