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The following information from the close of trading on November 24, 2010 is for an IBM bond with a face value of $1,000 and a

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The following information from the close of trading on November 24, 2010 is for an IBM bond with a face value of $1,000 and a maturity date of October 15, 2013 Coupon rate: 6.5% Price: $1,144 Yield to maturity: 1.39% The bond's current yield was %. (Round your response to two decimal places.) Why is the bond's yield to maturity less than its coupon rate? O A. The price is higher than the face value, which lowers the yield to maturity. Lo O B. The price is higher than the face value, which makes the yield to maturity higher. B O C. The price is higher than the face value, which lowers the bond's current yield. O D. None of the above

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