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Ron Logan, CFA, is a bond manager. He purchased $50 million in 6.0% coupon Southwest Manufacturing bonds at par three years ago. Today, the bonds

Ron Logan, CFA, is a bond manager. He purchased $50 million in 6.0% coupon Southwest Manufacturing bonds at par three years ago. Today, the bonds are priced to yield 6.85%. The bonds mature in nine years. The Southwest bonds are trading at a:

A. discount, and the yield to maturity (YTM) has increased since purchase.

B. premium, and the yield to maturity (YTM) has decreased since purchase.

C. discount and the yield to maturity (YTM) has decreased since purchase.

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