Assume that a particular Treasury security pays a coupon rate of 5.75 percent. The yield to maturity on the bond is 9.0 percent. From this information we know that
A) the bond is selling at a discount.
B) the yield to maturity exceeds the coupon rate.
C) interest rates have risen since the bond was issued.
D) the bond is selling at a premium.
Correct Answer:
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