Somebody help me understand this question. Take a look at it. The answer is none of these, but when I did some research It’s saying the answer is yield to call, yield to maturity, current, coupon. I also asked an advisor who’s already passed this exam if that was correct and he said yes. Please explain.
[XX9DH] A 30 year bond, which is callable in 8 years at 102, h... | Achievable SIE…
Since the bond is bought at par (face value), all the yields - (current yield, yield to maturity (YTM), and yield to call (YTC)* - will essentially be the same as the coupon rate. This is because there’s no purchase premium or discount affecting the original price.
The order you referenced would be accurate for a bond purchased at a discount.
Our section on Yield for par bonds helps to explain this further!
*YTC would be slightly higher because there is a call premium (vs. calling at par), but that doesn’t impact the question, as the rest of the yields are the same.