Question 2 (10 points) A bond pays a coupon of 6.75% per year and the...
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Question 2 (10 points) A bond pays a coupon of 6.75% per year and the bond's current yield is 7.11% per year. Therefore, the bond is trading at a ____ to its par value. If the bond's yield to maturity does not change, the bond's price will be next year. A) Premium, the same B) Discount, higher C) Discount, lower D) Premium, higher E) Premium, lower
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