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Which one of the following statements explains why bonds sometimes trade at a premium? Select one: a. The bonds cash flows have a positive net
Which one of the following statements explains why bonds sometimes trade at a premium?
Select one:
a. The bonds cash flows have a positive net present value.
b. The bonds internal rate of return is lower than its yield.
c. The bonds coupon is lower than its yield.
d. When other things are equal, investors prefer higher coupon payments.
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