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9) Taussig Corp's bonds currently sell for $1.150. They have a 6.75% annual coupon rate 15-year maturity, they have been called in 6 years at
9) Taussig Corp's bonds currently sell for $1.150. They have a 6.75% annual coupon rate 15-year maturity, they have been called in 6 years at $1.067.50. Under these conditions, whe rate of return should an investor expect to earn. Original par value is $1000. 10) Consider a coupon bond that sold at par value two years ago. If interest rates are much lower now than when this bond was issued, the coupon rate of that bond will likely be the prevailing interest rates, and the present value of the bonds will be its par value. a. above above b. above; below c. below; below d. below: above 11) Consider a coupon bond that sold at par value two years ago. If interest rates are much higher now than when this bond was issued, the coupon rate of that bond will likely be the prevailing interest rates, and the present value of the bonds will be its par value. a. above; above b. above; below c. below; below d. below: above their 12) Bond portfolio managers expect interest rates to increase in the future, they would likely holdings of bonds now, which could cause the prices of bonds to as a result of their actions. a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase 13) If bond portfolio managers expect interest rates to decrease in the future, they would likely their holdings of bonds now, which could cause the prices of bonds to as a result of their actions. a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase
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