1. What is a "par bond"? What is a "premium bond"? What is a "discount bond"? ( 2. What is the relationship between coupon rate and YTM for a discount bond? 3. What is the relationship between coupon rate and YTM for a premium bond?
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A "premium bond" is a bond that is issued at a price higher than its face value, and a "discount bond" is a bond that is issued at a price lower than its face value. Show more…
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