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Accounting Assignment/ Professional Essay Writers

If market interest rates fall to 5%, what would be true of a bond that pays coupons of 7% semi-annually?

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a) The bond will sell at a premium.

b) The bond will sell at a discount.

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c) Bond will sell at par.

d) Coupon rate will be increased to current interest rates)Principal to be repaid will increase. Get Accounting help Today

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