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3. If an investor sells a bond prior to maturity and if interest rates in the economy have risen since the bond was purchased, the

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3. If an investor sells a bond prior to maturity and if interest rates in the economy have risen since the bond was purchased, the investor will: a. Realize a capital gain. b. Realize a capital loss. c. Realize a coupon gain. d. Realize a coupon loss. e. Break even a 4. If a bond sells at a high premium, then which of the following relationships hold true? (Po represents the price of a bond and YTM is the bond's yield to maturity.) a. Po the coupon rate. b. Po > par and YTM > the coupon rate. c. Po > par and YTM

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