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3. Investor decides to sell 2% coupon bond which he bought 5 years ago. Interest rate in the market has meanwhile decreased significantly. a. Bond

3. Investor decides to sell 2% coupon bond which he bought 5 years ago. Interest rate in the market has meanwhile decreased significantly.

a. Bond price is below its par value

b. Bond price is above its par value

c. Investor does not make any profits, since he sold bond before maturity date

d. Investor makes profit, because bonds have low investment risk

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