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a. The bond's yield to maturity if the bond pays interest annually is 1%. (Round to three decimal places.) b. The bond's yield to maturity
a. The bond's yield to maturity if the bond pays interest annually is 1%. (Round to three decimal places.) b. The bond's yield to maturity if the bond paid interest semiannually would be 6. (Round to three decimal places.) c. Based on the findings in parts a and b, which of the following statements is correct? (Select the best choice below.) A. Other things being equal, the YTM is the same for both an annual bond and a semiannual bond if the bond is selling at a premium. B. Other things being equal, the YTM is higher for a semiannual bond than an annual bond if the bond is selling at a discount. C. Other things being equal, the YTM is the same for both an annual bond and a semiannual bond if the bond is selling at a discount. D. Other things being equal, the YTM is higher for an annual bond than a semiannual bond if the bond is selling at a discount
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