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- A corporate bond with a $1000 face value sells for $ 1126. 1. The bond sells at a premium because its coupon rate is

- A corporate bond with a $1000 face value sells for $ 1126.

1. The bond sells at a premium because its coupon rate is below its yield to maturity.

2. The bond sells at a discount because its coupon rate is below its yield to maturity.

3. The bond sells at a discount because its coupon rate is exceeds its yield to maturity.

4. The bond sells at a premium because its coupon rate is exceeds its yield to maturity.

5. None of the above.

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