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a. What is the relationship between the price of a bond and its YTM? b. Explain why some bonds sell at a premium over par
a. What is the relationship between the price of a bond and its YTM?
b. Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? What about for discount bonds? For bond selling at par value?
c. What is the relationship between the current yield and YTM for premium bonds?
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