Bonds : Yield to Maturity and Coupon Rate
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If a bond with a par value of $1000 is selling for $1075 on the bond market:
a. The YTM is equal to the coupon rate.
b. The YTM is less than the coupon rate.
c. The YTM is greater than the coupon rate.
d. None of the above.
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Solution Summary
Bond YTM and coupon rate are investigated.
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