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13. Suppose a 30-year US Treasury bond was issued in the early 1970s with a 30 -year maturity and a 6.2% coupon rate. Initially the

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13. Suppose a 30-year US Treasury bond was issued in the early 1970s with a 30 -year maturity and a 6.2% coupon rate. Initially the bond was priced at par. Describe how the bond price likely evolved over the next several decades and, specifically, whether the bond would have traded at a discount or premium. HINT: recall the history of US interest rates discussed in Section 3.1

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