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A bond pays a coupon of 5.5% per year and the bonds yield to maturity is 5.24% per year. Therefore, the bond is trading at
A bond pays a coupon of 5.5% per year and the bonds yield to maturity is 5.24% per year. Therefore, the bond is trading at a ____ to its par value. If the bonds yield to maturity does not change, the bonds price will be ____ next year
A)
Discount, the same
B)
Discount, higher
C)
Discount, lower
D)
Premium, higher
E)
Premium, lower
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