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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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