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40. Rosina purchased one 15-year bond at par value when it was initially issued. This bond has a coupon rate of 7 percent and matures
40. Rosina purchased one 15-year bond at par value when it was initially issued. This bond has a coupon rate of 7 percent and matures 13 years from now. If the current market rate for this type and quality of bond is 7.5 percent, then Rosina should expect: (a) (b) (c) (d) the bond issuer to increase the amount of all future interest payments the yield to maturity to remain constant due to the fixed coupon rate to realize a capital loss if she sold the bond at today's market price today's market price to exceed the face value of the bond
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