Question: Suppose there are two bonds from the same sector with the same risk and maturity.One is a discounted bond and the other is a premium

Suppose there are two bonds from the same sector with the same risk and maturity. One is a discounted bond and the other is a premium bond.

1. Which one might have a higher coupon rate and why?
2. Which is likely to have a higher YTM and why?

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A premium bond is likely to have a higher coupon rate than a discounted bond A premium bond is one whose current market price is higher than its face ... View full answer

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