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A 10 year bond was issued three years ago. It has a Face Value of $1000 and makes coupon payments of $23 every six months.

A 10 year bond was issued three years ago. It has a Face Value of $1000 and makes coupon payments of $23 every six months. If the current yield to maturity is 4.2% pa compounding semi-annually, will this bond sell at a premium, discount or at par today?

a.premium

b.discount

c.not enough information provided to determine

d.at par

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