Question: ( 1 5 points ) A treasury bond with a time to maturity of 7 years and a coupon rate of 3 . 8 4

(15 points) A treasury bond with a time to maturity of 7 years and a coupon rate of 3.84%(paid annually) is trading at par. Suppose you are considering investing in a 7-year maturity bond issued by the 3M Company, with a coupon rate of 3.84%(also paid annually). Should this 3M bond trade at a premium, at par, or at a discount? Should this 3M bond's YTM be higher or lower than 3.84%?

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