An 8% corporate bond is offered on a 8.25 basis. Which of the following statements are TRUE?
Nominal yield is higher than YTM.
Current yield is higher than nominal yield.
Nominal yield is lower than YTM.
Current yield is lower than nominal yield.
A) I and III.
B) I and IV.
C) II and IV.
D) II and III.
Answer: D) II and III.