A 10-year bond, callable in 5 years at par, is sold at a discount. Rank the following yields from lowest to highest.
Nominal yield.
Current yield.
Yield to call.
Yield to maturity.
A) IV, II, III, I.
B) I, II, III, IV.
C) I, II, IV, III.
D) II, I, IV, III.
Answer: C) I, II, IV, III