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A fixed coupon bond with par value of $1,000 has a coupon of 7%, semiannually payable. The current annual nominal market interest rate (i.e., yield
A fixed coupon bond with par value of $1,000 has a coupon of 7%, semiannually payable. The current annual nominal market interest rate (i.e., yield to maturity) for this bond is 6%. Therefore the bond is selling .. and the bond's current yield is ..
| A. at a discount; greater than 7% |
| B. at a premium; greater than 7% |
| C. at par value; at 7% |
| D. at a discount; less than 7% |
| E. at a premium; less than 7% |
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