If it's yield to maturity is less than its coupon charge, a bond will sell at a premium, and increases in market interest charge will decrease the premium. If the coupon rate is less, then Yield to maturity is at the discount price.
The yield to maturity is also known as redemption yield of bond or the fixed interest securities, is can be calculated as the total rate of return anticipated gain by the investor in the bond they have invested.
The profit of investor can be accumulated only when the investors, holds the bond till the age of maturity of the bond.
Thus, premium and decrease the premium.
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