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A company releases afive-year bond with a face value of$1000 and coupons paid semiannually. If market interest rates imply a YTM of 10%, which of

A company releases afive-year bond with a face value of$1000 and coupons paid semiannually. If market interest rates imply a YTM of 10%, which of the following coupon rates will cause the bond to be issued at apremium?

12%

10%

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