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1. Assume that a bond with semi-annual coupon payment is outstanding. An increase in market interest rates will: increase the coupon rate of the bond.

1. Assume that a bond with semi-annual coupon payment is outstanding. An increase in market interest rates will:

increase the coupon rate of the bond.

decrease the coupon rate of the bond.

increase the market price of the bond.

decrease the market price of the bond.

not affect the market price of the bond.

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