Question: Question 5 Suppose you purchase a $ 1 0 0 0 par, 5 % coupon rate bond at par. Right afterwards the YTMs for similar

Question 5
Suppose you purchase a $1000 par, 5% coupon rate bond at par. Right afterwards the YTMs for similar bonds increase to 8%. The bond price will trade ______. You will receive a gain or a loss on the bond you purchased?
at a premium; gain
at a discount; gain
at a premium; loss
at a discount; loss

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