What does it mean for a bond to trade at a “premium”, “at par” or at a “discount? What do these 3 situations mean with regard to the relationship of price to the face value? What do these 3 situations mean with regards to the relationship of yield-to-maturity to the coupon rate? What is a zero-coupon bond? and does a zero-coupon bond change anything in the above questions/situations?
What does it mean for a bond to trade at a “premium”, “at par” or at a “discount? What
do these 3 situations mean with regard to the relationship of price to the face value? What do these 3 situations mean with regards to the relationship of yield-to-maturity to the coupon rate? What is a zero-coupon bond? and does a zero-coupon bond change anything in the above questions/situations?
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