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Question(s) / Instruction(s):

A bond has coupon payments of $60 per year and a face value of $1000. If the yield to maturity on the bond is 7%, this bond should:

  1. Sell at a premium
  2. Sell at a discount.
  3. Sell for either a premium or a discount but it's impossible to tell which.
  4. Sell for par value.

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