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1a). How is the coupon rate used in the pricing of bonds? 1b). How is the market rate used in the pricing of bonds? 1c).
1a). How is the coupon rate used in the pricing of bonds? 1b). How is the market rate used in the pricing of bonds? 1c). Why is the market rate, rather than the coupon rate, the "real" interest rate a company pays on its bonds?
Please answer these with an in detail explanation. Thank you!
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