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Is the yield to maturity higher or lower than coupon rate

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Problem 1: Face value of a bond is $1000 with a 12% coupon. The current market price of the bond is $900. Is the yield to maturity (YTM) higher or lower than the coupon rate? Explain. (You need to explain why YTM is different from coupon rate, do not compute the YTM)

Reference no: EM132940131

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