Is the bond selling at premium at par and at discount

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Reference no: EM131964125

Consider a bond with 10% coupon rate and YTM (Yield To Maturity) of 8%.

If the bond’s YTM remains constant then in 1 year will the bond price be higher, lower or unchanged? Why?

Hint: is the bond selling at a premium, at par and at a discount?

Reference no: EM131964125

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