Kirsten Thompson, CFA candidate, is studying the relationships between a bond’s coupon rate and the required market yield. One study question concerns a new-issue, 15-year, $1000 face value 6.75 percent semi-annual coupon bond priced at $1075. Which of the following choices correctly describes the bond and accurately represents the relationship of the bond’s market yield to the coupon（）
A. Premium bond, required market yield is less than 6.75%.
B. Premium bond, required market yield is greater than 6.75%.
C. Discount bond, required market yield is less than 6.75%.
参考答案：A
解析：
When the issue price is greater than par, the bond is selling at a premium. We also know that the current market required rate is less than the coupon rate of 6.75%, because the bond is selling at a premium.
For the examination, remember the following relationships:
| Type of Bond
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