Question: 5.3 a. (2 points) What is the relationship between the price of a bond and its YTM? (i.e. as YTM increases what happens to the

 5.3 a. (2 points) What is the relationship between the price

5.3 a. (2 points) What is the relationship between the price of a bond and its YTM? (i.e. as YTM increases what happens to the bond price) b. (2 points) Explain why some bonds sell at a premium over par value while other bonds sell at a discount. c. (2 points) What do you know about the relationship between the coupon rate and the YTM for premium bonds? (i.e. which one is larger, if either) d. (2 points) What about for discount bonds? e. (2 points) For bonds selling at par value

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