Question of the Week
State of Illinois 4.50s of 2021 trading @ 4.55
b) City of Bonder 6s of 2014 trading @ of 5.20
c) Morgan County 5s of 2009 trading @ 6.15
d) City of Nokomo 5.10s of 2020 trading @5.20
correct answer is b.
MSRB rules require that the customer confirmation show the lowest potential yield. In a bond trading at a premium, this would, of course, be the yield-to-call. Only the bond in choice “A,” is trading at a premium, the others are trading at a discount.