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Business, 10.03.2020 16:57 jholland18

Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par.

Coupon interest rate

Yield to maturity

11%

6%

What is the price of the bond in relation to its parvalue? (Select the best answer below.)

A. The bond sells at par.

B. The bond sells at a premium to par.

C. The bond sells at a discount to par.

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Answers: 1

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