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If a bond sells at a high premium, then which of the following relationships hold true? (P 0 represents the price of a bond and
If a bond sells at a high premium, then which of the following relationships hold true? (P0 represents the price of a bond and YTM is the bond's yield to maturity.)
P0 < par and YTM > the coupon rate. P0 > par and YTM > the coupon rate. P0 > par and YTM < the coupon rate. P0 < par and YTM < the coupon rate
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
