If a bond sells at a high premium, then which of the following relationships hold true? (P0 represents the price of a bond and YTM is the bond's yield to maturity.) Select one: (A) P0 the coupon rate. (B) P0 > par and YTM > the coupon rate. (C) P0 > par and YTM < the coupon rate. (D) P0 < par and YTM < the coupon rate.
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Home » Business » If a bond sells at a high premium, then which of the following relationships hold true? (P0 represents the price of a bond and YTM is the bond's yield to maturity.) Select one: (A) P0 the coupon rate. (B) P0 > par and YTM > the coupon rate.