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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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