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A $1,000 face value bond has 12 years to maturity with a coupon rate of 8%. Which of the following statements is certainly true? 1.
A $1,000 face value bond has 12 years to maturity with a coupon rate of 8%. Which of the following statements is certainly true?
1. if interest rates have risen, the yield to maturity will be below 8%
2. the bonds yield to call will be 8%
3. if interest rates have risen, the current yield will be above 8%
4. if interest rates have been unchanged, the yield to call will be 8%
5. the bonds current yield will be 8%
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