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The yield to maturity on a bond issued at premium is: 1) equal to both the coupon rate and the current yield. 2) less than th
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Answer #1

The yields to maturity on a bond issued at premium is

3) lees than the coupon rate because investors are agreeing to pay a premium over the face value only of the coupon payment rate is higher than the market rate currently being offered in the Market.

1) is incorrect because in this situation bond will trade at par

2,4,5 are incorrect because of the reason justified above

I hope this makes sense.

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