Relative to a municipal bond purchased at a discount, place the following in the proper sequence from lowest to highest.
I, II, and III
II, I, and III
III, I, and II
III, II, and I
A bond trading at a discount has a nominal yield that is less than its yield-to-maturity. Current yield falls between the nominal yield and yield-to-maturity. A bond trading at a premium has a nominal yield which is higher than the yield-to-maturity, with the current yield in between the other two yields. (5-9)