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If Its Yield to Maturity Is Less Than Its Coupon

Question 35

Multiple Choice

If its yield to maturity is less than its coupon rate, a bond will sell at a _____, and increases in market interest rates will _____.


A) discount; decrease this discount.
B) discount; increase this discount.
C) premium; decrease this premium.
D) premium; increase this premium.
E) None of the above.

Correct Answer:

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