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9. Rudy Inc. bonds are selling at face value with a coupon rate of 10 percent. The bonds will mature in 15 years. Coupons are
9. Rudy Inc. bonds are selling at face value with a coupon rate of 10 percent. The bonds will mature in 15 years. Coupons are paid annually. If prevailing interest rate decreases, then which of the following is correct? I. coupon rate will decrease. II. current yield will decrease. III. yield to maturity will be lower than the coupon rate. IV. market price of the bond will decrease. A. I only B. I and II only C. II and III only D. I, III and IV only
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