boismier7328 boismier7328
  • 28-01-2022
  • Business
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If the dollar price of a municipal bond is 101 and, at that price, the basis is 6.10, the nominal yield is

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Tundexi
Tundexi Tundexi
  • 09-02-2022

The nominal yield will be greater than 6.10 if the basis is at 6.10.

What does nominal yield entails?

For the bonds trading at a premium, the nominal yield are always higher than the basis which is called YTM

Hence, the nominal yield will be greater than 6.10 if the basis is at 6.10.

Therefore, the Option B is correct.

Read more about nominal yield

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