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4) 10 points: You purchase a bond new issue with a ten-year maturity and a face value of $1000. This bond has a 4% coupon

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4) 10 points: You purchase a bond new issue with a ten-year maturity and a face value of $1000. This bond has a 4% coupon that is paid semi-annually. If interest rates on similar bonds rise to 5%, will this bond be trading at a premium, discount, or at par

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