Answer:
its coupon rate is greater than its yield to maturity
Step-by-step explanation:
A par bond can be regarded as bond which is been seld at its exact face value. This typically express that a bond which sells for $1,000, because
this is the face value of most of the available bonds. A par bond will produce yield to the investor that has matches with coupon amount which is been attached to the bond.
A premium bond can be regarded as bond that is trading above its face value, it is one that it's costs is more than the face amount that is on the bond. When a bond trade at a premiums then its interest rate is higher compare with current rates in the market. A bond which is trading above its par value as regards secondary market can be regarded as premium bond. It should be noted that one can be sure that a bond will sell at a premium to par when its coupon rate is greater than its yield to maturity