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18. You can buy a $ 1,000 par value bond for $ 800 . The coupon rate is 10 % ( with annual payments), and
18. You can buy a $ 1,000 par value bond for $ 800 . The coupon rate is 10 % ( with annual payments), and there are 10 years before the bond will mature and pay off its $1,000 par value. The price of the bond suggests that the expected return on bonds with this risk is lowr 10 % . a. True b. False
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