QUESTION 5 If a bond is selling at a premium, that means it is selling for more than $1,000 its yield to maturity is greater than the coupon rate on the bond it is a higher quality bond than the company's other bonds it sold for too much
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This usually happens when the coupon rate (the interest rate stated on the bond) is higher than the current market interest rates. Investors are willing to pay more for a bond that pays more interest. Show more…
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