Explanation : Carrying value of a bond is computed using the effective interest rate
method. It is the price along the bond's constant- yield price
trajectory. For premium bonds, as the premium is amortized, the book
value of the bond will decrease until we reach face value at maturity. The
question tells us that the bond was purchased above par, therefore it is a
premium bond. So among the three options A is correct.
Explanation : Yield duration statistics measure the sensitivity of a bond’s full price to the
bond’s own yield to maturity. Curve duration statistics measure the
sensitivity of a bond’s full price to the benchmark yield curve.