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When a bond trades at a premium, which bond yield will be the lowest?

User Mahdad
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Answer:

Understand that the YTM is the lowest for a premium bond because it not only reflects the fact that the bond is being purchased for more than par; but it also reflects the annual loss of the bond premium as a reduction of the investment return. A corporation has issued 10% AA rated sinking fund debentures at par.

User Poorvank
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