Question: Consider what you have learned about valuing bonds. A: Coupon rate = 3.5%, YTM = 4% B: Coupon rate = 3.2%, YTM = 3.2% C:

Consider what you have learned about valuing bonds.

  • A: Coupon rate = 3.5%, YTM = 4%
  • B: Coupon rate = 3.2%, YTM = 3.2%
  • C: Coupon rate = 2.8%, YTM = 3.5%
  • D: Coupon rate = 4%, YTM = 3.7%

Which of the bonds is selling at a premium?

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