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A bond whose coupon rate is below its yield to maturity will sell:
AAt a discount
BAt a premium
CAt par exactly
DAt double par
Answer & Solution
Correct answer: A. At a discount
1. The coupon looks unattractive.
2. The price falls below face value.
3. It sells at a discount.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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