If a corporate bond is purchased at a discount, the bond's yields should be placed in order from lowest to highest as?

When a corporate bond is purchased at a discount, it means that the bond's market price is lower than its face value. In this scenario, the yields can be ordered from lowest to highest based on how they are calculated.

The nominal yield represents the interest rate stated on the bond, which is fixed and does not account for the purchase price. The current yield, calculated by taking the annual coupon payment divided by the market price of the bond, tends to be higher than the nominal yield when the bond is purchased at a discount because the current yield reflects the higher effective return realized based on the lower purchase price. Lastly, yield-to-maturity (YTM) incorporates the total returns from the bond, including both the interest payments and any capital gain from the bond being held until maturity, leading to the highest yield when purchased at a discount.

The correct order from lowest to highest yield, therefore, is nominal yield (the lowest), current yield (higher due to the bond purchase at a discount), and yield-to-maturity (the highest due to accounting for the entire holding period till maturity).