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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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