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A $1,000 par value bond pays a 9% coupon semiannually, and currently trades for $1,050. What must be true about the discount rate of bonds
A $1,000 par value bond pays a 9% coupon semiannually, and currently trades for $1,050. What must be true about the discount rate of bonds of this type and risk? (Mark all that apply) These bonds must yield more than 9% Riskier bonds should yield even less than this bond These bonds must yield less than 9% Riskier bonds should yield even more than this bond It is impossible to compute the exact yield on this bond without knowing more information
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