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1 0 - year 6 % coupon $ 1 0 , 0 0 0 par value bond with a semi - annual coupon is offered

10-year 6% coupon $10,000 par value bond with a semi-annual coupon is offered for sale at an asking price of $7,000. What would be the bonds value if, just after it was issued, the expected inflation rate fell (rose), and the required rate of return declined (increased) to 6%(13%)? Would the bond now be sold at par, at a premium, or at a discount in those situations?

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