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If the coupon rate on a bond is 6% and the bond is trading at a PREMIUM TO PAR, than the yield (YTM) should be:

If the coupon rate on a bond is 6% and the bond is trading at a PREMIUM TO PAR, than the yield (YTM) should be: {Hint: Think about the coupon, yield and price relationship}

A. less than 6%.

B. equal to 6%.

C. greater than 6%.

D. cannot be determined.

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