when the coupon 26. All else constant, a bond will sell at rate is the yield to maturity. 1. A) a premium; less than 2. B) a premium; equal to 3. C) a discount; less than 4. D) a discount; higher than 5. E) par; less than A C C C D C E Question 27 1 pts 27. You expect interest rates to increase further in the future while the bond market has not factored in such possibility. Which one of the following bonds should you purchase now to maximize your gains or minimize your losses if the further rate increase does occur? A) Short-term; low coupon B) Short-term; high coupon C) Long-term; zero coupon D) Long-term; low coupon E) Long-term; high coupon