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When the coupon interest rate is larger than the YTM, the bond is a

When the coupon interest rate is larger than the YTM, the bond is a

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Answer #1

When the coupon interest rate is larger than the yield to maturity it will mean that the bond is a premium Bond.

when the coupon rate which is issued on the face value of the bond is higher than the yield to maturity of the bond, it will mean that the bond is paying a higher amount of coupon and it is a premium Bond.

Correct answer is PREMIUM BOND.

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