Series 7 - General Securities Representative Exam
Preview Mode
The current yield on a new municipal issue is higher than the yield to maturity on the first four maturities of the bond. This is known as a(n)
Inverted yield scale
A
Normal yield scale
B
Ascending yield scale
C
Reverse yield scale
D
Explanations
This is a normal yield scale. The CY is higher than the YTM on only the first 4 maturities of the bond