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(5 points) Assume a 10-year Treasury bond has a coupon rate of 3.2 % and par value of $1000, and yield to maturity of 2%.
- (5 points) Assume a 10-year Treasury bond has a coupon rate of 3.2 % and par value of $1000, and yield to maturity of 2%.
Is this bond selling at a premium or discount?
Explain why?
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